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EURHUF Forecast – October-19-2023

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In this comprehensive EURHUF forecast, we delve into the intricate dynamics of the EURHUF currency pair. Our focus is to provide you with a detailed understanding of the current market trends, key resistance levels, and potential future scenarios. Let’s dive in.

A Tough Month for Hungary’s Construction Industry

Reuters – Hungary’s construction industry didn’t do so well in August 2023. It saw a decrease of 0.5% compared to the same time last year, which was a big change from the 3.4% increase it had in the previous month. This was mainly because there was a lot less building activity happening (-7.6% compared to 11.6% in July). On the other hand, engineering projects saw a bit of a boost, increasing by 13.6% after falling by 5% a month before. But overall, when you take into account seasonal and calendar changes, the construction industry was still doing 5% worse than the previous month.

EURHUF Forecast: Technical Analysis

The EURHUF currency pair recently experienced a breakout from its bearish channel. This was a significant event that caught the attention of many traders and analysts. However, the bullish momentum was not strong enough to break through the 391.6 resistance level. This was evident from the long wick candlestick pattern observed in the weekly chart.

The Relative Strength Index (RSI) and the Stochastic oscillator, two key technical indicators, have turned below their respective signal lines. This suggests that the outlook for the EURHUF pair remains bearish for now.

EURHUF Forecast - October-19-2023

EURHUF Forecast – Weekly Chart by TradingView

When we zoom into the daily chart of the EURHUF pair, we can see that it broke down the bearish trendline on Tuesday, October 23. Currently, the price is stabilizing itself below this level. The RSI indicator is below the 50 line, which is generally considered a bearish signal. However, the Stochastic oscillator is hovering in the oversold area. This could potentially extend the correction to the 386 area before the decline continues.

eurhuf forecast

EURHUF Forecast- Daily Chart

With the EURHUF price trading below the 388 pivot point, it appears that the bears have set a preliminary target at 379. This could be an important level to watch in the coming trading sessions.

However, if the EURHUF price manages to close above the pivot point, it would invalidate the current bearish scenario. In such a case, we could expect the market to rise and test – and possibly break – the 394-resistance level.

Conclusion

In conclusion, our EURHUF forecast suggests that traders should keep a close eye on these key levels and indicators. As always, it’s important to use proper risk management techniques when trading in volatile markets.

  • 19 October 2023
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