EUR/HUF 4H Chart: Junior pattern is broken

3 Jul 2018Two notable developments have taken place on the charts of the EUR/HUF since the last review.

First, the medium term ascending channel pattern, which guided the surge of the Euro against the Hungarian Florin in June, has been broken. Namely, the support line of the pattern was passed on Tuesday.

Secondly, the momentum for the passing of the support level was given by the upper trend line of a massive scale ascending channel pattern, which was drawn on Tuesday.

In regards to the short term future, the rate is expected to decline down to the 325.00 mark in the near future.

21 Ogo 2018

Komen

The EUR/HUF exchange rate has been moving in a descending channel since the end of June. The most noteworthy developments during this time is a breakout from a trend-line and a subsequent retracement from it which occurred last week.

The pair’s movement during the last two weeks has revealed the existence of a short-term symmetrical triangle. From theoretical point of view, this pattern is more likely to be breached to the upside. Two important levels to look out for is the weekly R1 and the many-year high at 327.30 and 330.75, respectively.

Conversely, the pair being located at such a historically high position might trigger a strong decline. This scenario should be confirmed by a bearish breakout from the 200-hour and 55-period (4H) SMAs near 322.00. Downside target in the short-term is the bottom channel line circa 315.00.