Following a reversal from the senior channel on March 18, the common European currency initiated a new wave up against the Hungarian Forint. Despite breaching a five-month trend-line near 313.50 two weeks ago, the pair did not accelerate but has since remained near this line.
Given that technical indicators are starting to converge with the price movement on the four-hour chart, it is likely that the bears eventually prevail and thus push the pair lower. This scenario should be confirmed if the Euro breaches the 200-hour SMA at 314.50. Downside target is the monthly S1 and the senior channel at 311.00.
In terms of the following trading days, the rate could still move slightly higher, as it is supported by the 55– and 100-hour SMAs, the monthly R1 and the weekly PP at 314.90. The nearest resistance is formed by the monthly R2 and the weekly R1 at 316.26.
Given that technical indicators are starting to converge with the price movement on the four-hour chart, it is likely that the bears eventually prevail and thus push the pair lower. This scenario should be confirmed if the Euro breaches the 200-hour SMA at 314.50. Downside target is the monthly S1 and the senior channel at 311.00.
In terms of the following trading days, the rate could still move slightly higher, as it is supported by the 55– and 100-hour SMAs, the monthly R1 and the weekly PP at 314.90. The nearest resistance is formed by the monthly R2 and the weekly R1 at 316.26.