FxWirePro: EUR/HUF on track to test 200-W SMA, good to stay short on rallies

EUR/HUF chart - Trading View 

• EUR/HUF has broken below 110-W EMA and is now below major EMAs on the weekly chart.
   
• Price is extending weakness for the 4th straight week and has slipped below weekly cloud.
   
• The pair has broken below major trendline support at 316.65.
   
• We find RSI nicely converging with price action with no sign of any divergences.
   
• Further, we evidence a 'Death Cross' formation (bearish 50-DMA crossover on 200-DMA) on the daily charts which adds to the bearish bias.
   
• Scope for weakness till 313.20 (200-W SMA). Further weakness only on break below.
   
• Retrace above 50-DMA could see test of 200-DMA at 322. Breakout at 200-DMA negates bearish bias.

Support levels - 315 (Jan low), 313.20 (200-W SMA), 313.10 (61.8% Fib)

Resistance levels - 317.09 (21-EMA), 318.73 (55-EMA), 322.21 (200-DMA)

Recommendation: Good to go short on rallies around 317, SL: 318.75, TP: 314/ 313.20

For details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.