EUR/HUF: Decline to persist on a move below 391 – SocGen

EUR/HUF’s correction is set to extend if 391 gives way, analysts at Société Générale report.

404 must be reclaimed to negate the break

“The HUF is outperforming in CEE4 this year, and the thawing of relations with the EU means the currency could stay in demand.”

“EUR/HUF recently confirmed a Head and Shoulders pattern and broke below the 200DMA highlighting potential downside.”

“EUR/HUF is now challenging intermittent support of 392/391 which happens to be the low of last August and the 50% retracement from January 2022. This is first layer of support. In case this gets violated, the down move could extend towards projection of 384.” 

“The neckline at 404 must be reclaimed to negate the break.”