Forex Market: USD/HUF daily forecast

During Friday’s trading session USD/HUF traded within the range of 228.37-229.81 and closed at 229.77.

At 9:21 GMT today USD/HUF was losing 0.08% for the day to trade at 229.58. The pair touched a daily low at 229.39 at 1:27 GMT.

Fundamental view

United States

The index of pending home sales in the United States probably rose 0.4% during June compared to May, according to the median forecast by experts. In May the indicator registered a third consecutive month of gains and also reached its highest level in the past eight months, rising 6.1%. Low mortgage rates, increasing number of homes for sale and higher employment in the country probably contributed to higher activity in the housing sector.

When a sales contract is accepted for a property, it is recorded as a pending home sale. As an indicator the index provides information on the number of future home sales, which are in the pipeline. It gathers data from real estate agents and brokers at the point of a sale of contract and is currently the most accurate indicator regarding US housing sector. It samples over 20% of the market. In addition, over 80% of pending house sales are converted to actual home sales within 2 or 3 months. Therefore, this index has a predictive value about actual home sales.

Although there are some cancellations, there are not enough for the data to be skewed one way or another. The base value of the index is equal to 100, while the base year is 2001, when there has been a high level of home sales.

The National Association of Realtor’s (NAR) will release the official index value at 14:00 GMT on Monday (July 28th). In case pending home sales increased more than anticipated, this would have a bullish effect on the greenback.

Technical view

According to Binary Tribune’s daily analysis, the central pivot point for the pair is at 229.32. In case USD/HUF manages to breach the first resistance level at 230.26, it will probably continue up to test 230.76. In case the second key resistance is broken, the pair will probably attempt to advance to 231.70.

If USD/HUF manages to breach the first key support at 228.82, it will probably continue to slide and test 227.88. With this second key support broken, the movement to the downside will probably continue to 227.38.

The mid-Pivot levels for today are as follows: M1 – 227.63, M2 – 228.35, M3 – 229.07, M4 – 229.79, M5 – 230.51, M6 – 231.23.

In weekly terms, the central pivot point is at 229.13. The three key resistance levels are as follows: R1 – 230.55, R2 – 231.32, R3 – 232.74. The three key support levels are: S1 – 228.36, S2 – 226.94, S3 – 226.17.