A great huff of breath being expelled in some cultures takes away your luck. If you find yourself sighing or huffing in anger you could be turning your knowledge of HUF and its foreign exchange rate into losses for you. It is far better to concentrate, manage your account, and leave your emotions behind. A good way to do that is to understand how one quote currency can vary in a different base pairing. The AUD/HUF and USD/HUF are two examples to study.
Foreign Exchange Rate for USD/HUF Comparison
The Hungarian Forint is certainly one of those currencies you do not think about too much in the USA or Australia. In fact you might overlook Hungary due to the many other European countries that have emerged more over the years. The only real way to assess whether the HUF is worthy of trading in either USD or AUD pairings is to examine the foreign exchange rate for each for a day like in mid July 2013. The USD/HUF was pulled up and you might have huffed out a bit of air upon seeing the chart just as we did.
This is a very volatile pairing. First, the rate is not favourable to the HUF at all since it is 225.0 approximately. Even in a day trade of this pairing you see a lot of straight spikes presumably where giant trades were made in order to take out profit in a second. Very jagged head and shoulders or triple tops could also be seen. By jagged we mean volatile to the point that a lot of trades happened even while the head and shoulders was being made. The foreign exchange rate did gain a new high with that triple top before showing a reverse to the trend. The trend continued to reverse, with periods of consolidation after the European market closed. Clearly this is a pair traded most often during the European markets. Additionally, the trend changed as soon as the European market in London opened.
Foreign Exchange Rate AUD/HUF Trade or Not?
The AUD/HUF pair does not look particularly better. It has many jagged edges with quite a few sudden spikes on its own. The difference in pattern was the consolidation pattern with a slight downward trend. When the market in Europe opened the trend turned upwards just as it did in the USD/HUF pairing. It created a new high but with a less clear definition, meaning it was hard to see since it had a gentle slope downwards for profit before more consolidation.
Just from the explanation you should understand the differences in pairings as well as the HUF foreign exchange rate. To help you a little more in your decision making process the AUD/HUF was 206.0 approximately for this same day.
The gigantic number with the straight spikes on both sides of the trends for the day clearly show that the HUF is a volatile pairing with little volume and liquidity. If you trade it you have to look for the open trend and the mid afternoon trend when the U.S. market opens.