Tensions from populism in central Europe (especially Hungary and Poland) will be in the focus of Europe in the near future: especially after the sanctions imposed on Hungary. Mario Draghi's statement yesterday confirmed the expectations for cautious disruption of QE in Europe. This makes long positions of USD crosses with the currencies of small European economies attractive.
USD / HUF
Weekly chart
We see a break out and retest of the downward channel. Divergence points to a reversal in the trend, as well as the double bottom around 38.2% Fibonacci. The price is currently at the bottom of the flag (ranging from 273 to 286). Long positions are supported by Fibonacci 23.6% (270.45).
Entry: Long position at 277.
S / L: 269
USD / PLN
Weekly chart
Entry: Long at 3.678
S / L: 3.647
USD / SEK
Daily chart
Divergence of RSI since May shows a lack of conviction in the upward movement. An attempt to break out above the previous peak failed. The price falls below the 50-day MA. We expect a continuation of the overall downward trend.
Entry: Short around 8.82; this level is just below 61.8% Fibonacci resistance (about 8.8242).
S / L: 8.87.
Read more:
25 Canada Square, Level 33, office 50, Canary Wharf London, E14 5LQ +44 20 3608 6256
World Financial Markets - 0700 17 600 Varchev Exchange - 0700 115 44
Varchev Finance Ltd is registered in the FCA (FINANCIAL CONDUCT AUTHORITY) with a passport in the United Kingdom: FCA, United Kingdom - registration number: 494 045, which allows provision of financial services in the United Kingdom.
Varchev Finance Ltd strictly comply with the statutes of the European directive MiFID (Markets in Financial Instruments). targeting increased efficiency, transparency and uniformity of financial instruments.
Varchev Finance Ltd is authorized and regulated by the Financial Supervision Commission - Sofia, Bulgaria: License number RG-03-02-05 / 15.03.2006
The information on this site is not intended for distribution or use by any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.
Disclaimer:
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 63,41% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.