EUR/HUF to to witness a bounce towards 426 on a break above 416 – SocGen

EUR/HUF has stabilised around 410 after pulling back from 434 to sub 400. A break past 416 is needed to avoid range-bound action, economists at Société Générale report.

Signals of a large downtrend are not yet visible

“Signals of a large downtrend are not yet visible; 200-DMA near 394/391 should be an important support zone.”

“Short-term price action could remain range-bound with upper band near graphical levels of 416 representing July high. If this is overcome, the pair is expected to witness a bounce towards 426, the 76.4% retracement of recent down move and perhaps even towards 434.”