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EURHUF Ranges Narrow Amid Few Domestic/Global Risk Events

HUF

A slightly softer USD index and moderate uptick in major US equity indices today is struggling to provide any meaningful reprieve for CEE FX, with EURHUF trading within Thursday’s ranges so far Friday. Moves in either direction are lacking any follow-through, with prices in the fallow period between ECB and BoJ/Fed event risk.

  • The cross is standing marginally in the green at typing, which sees the forint performing mixed among its regional peers (PLNHUF: -0.15%; CZKHUF: +0.07%).
  • Technically, the recent recovery in EURHUF has been a bullish development and suggests that the bear leg between Sep 28 - Oct 24 is over. If correct, this highlights a stronger reversal and potential for a continuation higher. The focus is on resistance at 389.20, the Oct 9 high. A break of this level would expose key resistance at 394.67, the Aug 3 high. On the downside, a break of 380.73, Tuesday’s low, could reinstate a bearish theme.

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