USD HUF breaking out now Long - Wednesday 23 October 24
I noticed this breaking out a few hours ago and I took a Long position.
It pulled back and went quiet for a while with little volume. But the strong way it broke out I figured closer to the New York session there will be more traders onto this.
Daily and weekly chart for where price is headed next.
Usdhuflong
Hungarian Forint (HUF) at Risk as Ukraine Cuts Oil SupplyUkraine's halt on oil transit from Russia's Lukoil throws Hungary's energy security into question. With reliance on the Druzhba pipeline for 70% of its oil, Hungary faces a shortage and potential price hikes. This disruption is poised to trigger a domino effect: rising energy costs, inflationary pressures, and a widening trade deficit due to increased import needs. As a result, the Hungarian Forint (HUF) becomes vulnerable to depreciation due to potential capital outflows and central bank intervention to curb inflation.
However, there's a glimmer of hope. Diversifying energy sources through alternative pipelines from unaffected Russian companies or the Adria pipeline (capacity limitations permitting) could offer some relief. Additionally, long-term investments in renewable energy can lessen Hungary's dependence on foreign oil and stabilize energy costs. Furthermore, regional cooperation with neighboring countries like Slovakia and Czechia, which also depend on the Druzhba pipeline, could lead to collaborative solutions and shared infrastructure investments. The coming months will be critical for Hungary as it navigates this complex crisis and implements effective mitigation strategies to safeguard its economy and the stability of the Forint.
Overvalued (+10%) Central European Currencies vs. USDInflation induced rate differentials over nominal exchange rates drove a steady (almost uniform) overvaluation of the Central European Currencies vs. the USD.
With present premiums around +10% a swift, near term correction is ever more likely.
LONG USDHUF, USDPLN, USDRON, USDCZK
USD/HUF - (massive) Long; Highest conviction trade since 2020!This is a no-holds-bared, unmitigated, lock-and-load - and do it now! -, scenario. It does not get any easier than this, not even in the EUR/USD.
The Hungarian Forint is staring at a massacre, with immediate effect.
(... despite the fact that I applaud Victor Orban, the Hungarian Prime. Nevertheless, he has nothing left to work with. Simultaneously, he (still) is public enemy #1 for the EU - as member states go -, as well as in the eyes of the Biden administration. Now, the only remaining friendly country to Hungary, in Europe, is the Vatican. Orban courageously fought the good fight, all along, but, at least economically: "It's been nice signing with you Koko but ..." - It's over.)
p.s. Everything the western media had been spewing about Orban for the past 12 years lacks a single iota of truth. - Bet on it! The guy won 3 democratic elections with 2/3 majority which, even the communist slime-run EU, was forced to admit.
I will forgo the long version here and provide in lead words what matters here;
- Hungary is a tiny economy (10 million people), one of the smallest EU members; (IBordering with Ukraine and taking in the second largest number of Ukrainian refugees - after Poland - while the Kyiv continues to prosecute it's large, Hungarian minority.)
- They built the first wall on their southern border, which the EU never paid for - as they remain obligated to do so but likely never will;
- Hungary is 72% agricultural, lacking any and all energy (or other, primary) resources. E.g. It is 100% dependent on Russian energy - regardless how it gets there (indirectly from Russia at a major markup, very likely in the near future.)
- Hungary categorically refuses to support the EU madness or to go along with US demands to join the fight for the Ukraine ; (Orban is no friend of Putin but he is also unwilling to crater Hungary's economy on a US/EU whim.)
- The Hungarian National Bank recently spent a significant portion of it's reserves to buy gold. The unfolding USD rally will likely temper any related enthusiasm;
- The EU is currently (punitively) the portion of EU funds due to Hungary for fiscal 2023;
-The Biden administration recently made it a point to go after Hungary (Orban specifically) "to enhance a regime change". (Wasn't that illegal, at least on paper? ...)
- Sunday's State of the Union by Orban is a potential call to arms in the West.
(One could write a book but) Long story short: The combined Western Alliance is about to lean into Hungary which is most unlikely to result in any economic, monetary or any other, miscellaneous national - or monetary - benefits.
Bottom line: There is blood in the water here so, start taking very big bites! - Long!
USDHUF breakout after retrace to resistance zone - am I correct?Hey guys, I'm new here, but just wanted to confirm some of my recently learned knowledge. Based on the first kiss (Naked Forex) principle, I went back on the charts and found this pattern on US dollar v Hungarian Forint.
I noticed that between the 28th of April and the 18th of May, this pair was consolidating. A very strong support and resistance zone was created with a few touches at the top and bottom of the zone.
When it finally broke out, you could see it touched (last kissed) the top of the zone, and then continued the uptrend, like the first fakeout made it seem to be.
Don't know how deep the last kiss can be in the zone, but I think this is kinda the right signal for a long. (Which I didn't take, because I retraced it in the past)
Do you guys agree? And if not, what could I have missed that could be of importance in my next trades? Thanks!
Jasper
USDHUF - How to play the dollar long ?One vehicle how you can short or long the dollar is the USDHUF.
The USDHUF mirrors the DXY moves pretty well.
Though watching the FIB retracement we are at no man's land : the Fibonacci 61,8% is still 10 HUF away:
we have important levels at 354.738, 352.993, and 351.248.
I don't think price will break these levels at the first try. If we can bounce from here price will tag the 50 EMA and 200 EMA at 378-380.
USDHUF best possible setup for long.Mid to long term trade idea. This pair is in a bullish flag. For the USD to cost only 284 is more than a bargain price to load up on dollars against the forint. Also confluence is the retracement to Fib 0.382 of the bull run that started in 2018. I think there is not a better setup to make some good money. Price however may hit 280 so I wouldn’t place stop loss at that area, but I think 280 is the very bottom if we go there.
USDHUF - Silver MedalAs you might know Hungary is at the 2nd place in Covid vaccination in Europe.
As we reached the magic 50% - rate of the vaccinated people in the population- the USDHUF broke and important level : 290 .
It looks now we printed an intermediate bottom - or at least a DCL - and now as the dollar is coming out of its DCL the USDHUF will rally again.
Indicators:
MACD, TSI crossing over , RSI left the oversold territory.
Correction wave structure.Correction wave structure. On the USDHUF pair, I would like to show how the structure of the correction wave develops. If we look at the figure, it can be seen that the size of the descending wave structure indicated by the red line is the same. At the end of each descending wave structure, there is a correction wave marked "A". We also see that the correction wave "A" doubles at the end of each descending wave structure. A very good example of how a descending wave structure is transformed into an ascending wave structure. But let’s move on to the USDHUF movement. You can see that a turn is visible at the current level. The resulting ascending wave structure may double (8A) at the preceding (4A) ascending wave structure. It could also mean that the USDHUF could embark on a lasting uptrend. Target price: 340 HUF
USDHUF technically based forecast
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💡 USDHUF technicaly based idea, we can see price is bounce from bottom trend line, candels formation is good bulish, technicaly indicators showing we can expect higher push up in price exepcting push till top trend line.
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