The monthly chart of the USDHUF pair offers a good example of a Rounding Bottom formation.
The pattern, completed in December, sets a minimum target for the resulting move to 362.228. Rounding bottoms could result in parabolic moves that potentially create a wide range of trading opportunities for traders.
Shorter term, USDHUF closed Tuesday’s US session at 284.38, or 1.94% higher than Monday’s close.
The strong move of today, whose range is higher than the 3, 5 and 10-day average range, completed a 5-month Failure Reversal Head and Shoulder, a pattern that implies a minimum measured move to around 305.