USD/HUF Forecast Today - 23/09: USD Drops Vs HUF (Chart)
Date
9/23/2024 5:04:26 AM
(MENAFN- Daily Forex)
The US dollar looks like it is on its back foot, which makes a certain amount of sense considering that the federal Reserve has cut interest rates. This increased the interest rate differential between the US dollar and the Hungarian forint, as Hungary has an interest rate of 6.75% and the United States has pulled back to the 5% region. In other words, you get paid to short this pair, you also have to keep in mind that the Hungarian forint is in exactly a huge currency, so a lot of traders would be a little bit cautious about getting overly aggressive.
Technical Analysis
The US dollar has dropped a bit over the last couple of days, continuing the overall downward pressure that we had seen from the 200 Day EMA. Underneath, we have the 350 HUF level, an area that obviously is a large, round, psychologically significant figure, and an area that we had seen a significant bounce from previously. If we were to break down through that level, then it could open up a much deeper drop toward the 347 HUF level.
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On the other hand, if we were to turn around and rally from here, the 355 HUF level could be a target, and anything above there then goes looking to the 50 Day EMA. The 50 Day EMA of course is an indicator that a lot of people pay close attention to, especially now that the 200 Day EMA's is just above there. That being said, if we do reset level, then I would anticipate that we could see some type of selling pressure jump into the market. Above the 360 level, then it would be very bullish for the greenback.
All things being equal, it does look like you are more or less a“sell the rallies” type of market at the moment, and with that being the case you have to look at it through that prism. However, if we were to start seeing more of a“risk off market” overall, then you would see the US dollar strengthen.
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