Hungarian forint at a crucial level: huge strengthening potential

As it seems, the Hungarian forint got through its critical stage. After last year’s plunge, it has been showing an upward trend due to the Hungarian National Bank’s measures. The Hungarian National Bank (MNB) tried extraordinary measures, like interest rate hikes, to support and secure the stability of the Hungarian currency.

During its lowest period, one euro was worth more than HUF 430. By April, the forint strengthened and reached the 370/EUR zone. Napi.hu reported that for the last couple of months, the forint exchange rate has been stable. However, there are speculations about whether it has reached its equilibrium exchange rate or maybe it will show an even more expressive strengthening. Earlier, we reported that there might be hope for forint to reach the 340/EUR zone, which you can read about HERE.

Past tendencies

The strengthening from 430/EUR to 370/EUR has effectively made up for the currency’s decline from the previous year by making it one of the strongest strengthening currencies of the year. It encountered resistance at the 370 zone, which was the forint’s lowest point during the Covid pandemic. The currency often reached this zone, but it always recovered from it, although it did not make up for the weakness of the previous two years, particularly the pandemic year of 2020. This level is presently a boundary within the contradicting, more grounded heading, as is habitually the case in technical analysis. The exchange rate is attempting it for the fourth time so far. But each time, it has always reversed to the weak direction, in spite of the fact that the drops have gotten smaller and smaller.