The USD/HUF pair rose again during the session on Thursday, but quite frankly we would have had very little in the way of liquidity. This is especially true when you’re dealing with a currency such as the Hungarian forint, but the main reason I am paying attention to this market is that it gives such a clear-cut signal as far as I can see.
You can see that I have the 100 day exponential moving average on this chart, and it does look as if it is offering a bit of support. This is a good sign as longer-term traders do like this particular average, and it does tend to work out over the longer term. On top of that, we have the support at the 285 handle, which of course is a large, round, psychologically significant number. That means that the buyers definitely seem to be interested. This was an area that had been resistance previously, and now offering support makes a lot of sense.
Buying Pullbacks
I believe that you can buy pullbacks in this pair, and that we will eventually reach towards the recent highs of the 295 region. That makes for a nice setup as it makes the chart very symmetrical, which is an odd feature of exotic pairs if you zoom out far enough. This tends to be the case mainly because of the fact that most people involved in these pairs are doing so due to necessity, so it does active bit different than other pairs.
Given enough time, I do think that this market not only reaches the 295 level, but very possibly the 300 level after that. After all, the markets are bit concerned at the moment, and that normally means that the US dollar is favored. After all, the one thing that the Hungarians cannot get away from is the fact that they are surrounded by the Europeans. With fact, you have to think that there is a bit of a “knock on effect” when it comes to the Hungarian forint. I believe ultimately this pair offers nice long-term buying opportunities.
