USD/HUF technical analysis: three white soldiers bullish pattern

USD/HUF technical analysis


The worst-performing currency today is the Hungarian forint, down by more than 1% on the day against the USD (USD/HUF), as Russian gas disruptions fuelled selling pressures on Central Eastern European currencies.

The latest candlesticks analysis provides a strong bullish signal generated by the three white soldiers pattern. This pattern can be identified by the appearance of three green candles in a row, each with a higher open and close than the previous day.

The USD/HUF pair has crossed the 400-mark, returning to 2-week highs after a 7 percent decline from its July 12 high to the end of last week.

The confirmation of the bullish trend and the strong momentum of buyers – the RSI is on the rise – might lead USD/HUF to test the next resistance levels at 406 (July 15 Highs) and then the all-time high of 414 reached on July 12.