Technicals Point To Forint Consolidation

The Hungarian forint has breached trendline support at HUF280.00/EUR on June 3 to trade at HUF287.44/EUR at one point on June 4. In light of this breach, we have revised our view on the forint to neutral from bullish. We particularly highlight support at HUF290.00/EUR as key to watch. Should the unit breach this level, we would view this as a highly bearish signal that could point to depreciation to below HUF300.00/EUR once again. By contrast, the point at which we would re-initiate our bullish call is with a breach of crucial resistance at HUF275.00/EUR.

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