The Hungarian forint continued to struggle at the end of last week as it set a fresh three-months low. Since no domestic factors were involved, the unit extended its losses due to ongoing bearish sentiment in core bond markets.
Intra-day: the EUR/HUF pair went to the new tree-months high 254.90 in early trading, but it seemed that the 255.0 resistance looked too strong, so the pair than hovered within the 254 area during the rest of the session, while EUR/HUF closed the week at 254.40. Given the empty domestic calendar it will be again exclusively core bond markets, which will define a direction for the forint. Should yields in euro-zone or the US continue to move higher, the forint would suffer even more. In this respect there several key levels, which will be worth to watch. The first resistance (for EUR/HUF) has already been mentioned above – it stands at 255.0. The second resistance is the 255.50 level, which the neckline of the (long-term) double bottom formation. And last but not least, the third key resistance can be found at the 256.35 level, which is the two-years high.