EUR/HUF has staged a strong rebound after touching the lower end of its multi-month range near 386. The pair is now testing the 50-day moving average, a key resistance that has limited gains since June, Société Générale's FX analysts note.

Forint faces pressure as Euro tests 50-DMA

"EUR/HUF has experienced a sharp bounce after approaching the lower limit of a multi-month channel and projections near 386. It is challenging the 50-DMA; this moving average has capped previous rally attempts since June and may result in a brief pause."

"The daily MACD has been posting positive divergence, highlighting receding downward momentum. Defence of last week’s high near 391/390.50 could result in the persistence of upward move. The next hurdle could be located at the March lows near 397."