Forex Market: EUR/HUF daily trading forecast

Friday’s trade saw EUR/HUF within the range of 312.460-314.170. The pair closed at 313.690, gaining 0.03% on a daily basis.

At 6:44 GMT today EUR/HUF was up 0.03% for the day to trade at 313.715. The pair touched a daily high at 314.000 at 6:05 GMT.

Fundamental view

Euro zone

Confidence among investors in the Euro zone was probably lower during the current month, with the corresponding index coming in at a reading of 2.0. In August it stood at 2.7, or the lowest level since August 2013. The index is based on results from the SENTIX survey, one of the most prominent surveys, reflecting investors’ opinion in Germany. It encompasses 2 800 respondents, with 510 of them being institutional investors. Respondents present their expectations regarding ten different markets for a period of one and six months. Readings above zero indicate that respondents were predominantly optimistic, while readings below zero signify pessimism. Lower than expected readings would mount selling pressure on the common currency. The official result is due out at 8:30 GMT.

Hungary

At 7:00 GMT Hungarian Central Statistical Office is to report on nations Balance of Trade for July. In June Hungarys trade balance produced a surplus at the amount of 179.01 billion HUF.

Countrys main exports include machinery and transport equipment, consumer goods, agricultural products, chemicals, apparel, textiles, iron and steel, wine, while main imports include machinery and equipment, other manufactures and fuels, electricity.

The trade balance, as an indicator, measures the difference in value between the exported and imported goods and services during the reported period. It reflects the net export of goods and services, or one of the components to form country’s Gross Domestic Product. Generally, exports reflect economic growth, while imports indicate domestic demand. In case the trade balance surplus expanded, this would have a bullish effect on the forint.

Technical view

According to Binary Tribune’s daily analysis, the central pivot point for the pair is at 313.440. In case EUR/HUF manages to breach the first resistance level at 314.420, it will probably continue up to test 315.150. In case the second key resistance is broken, the pair will probably attempt to advance to 316.130.

If EUR/HUF manages to breach the first key support at 312.710, it will probably continue to slide and test 311.730. With this second key support broken, the movement to the downside will probably continue to 311.000.

The mid-Pivot levels for today are as follows: M1 – 311.365, M2 – 312.220, M3 – 313.075, M4 – 313.930, M5 – 314.785, M6 – 315.640.

In weekly terms, the central pivot point is at 313.713. The three key resistance levels are as follows: R1 – 315.947, R2 – 318.203, R3 – 320.437. The three key support levels are: S1 – 311.457, S2 – 309.223, S3 – 306.967.