USD/TRY trades in overbought area
The bearish sentiment that had dominated the market since early August was reversed last week when the US Dollar started to appreciate against the Turkish Lira. As a result, a short-term ascending wedge was formed.
Trend indicators suggest that the up-trend is still solid; however, other types of indicators favour a possible downside momentum. In case it is only a minor correction against the general trend, the fall should be limited by the 23.6% Fibo and the weekly R1 near 3.4495. On the other hand, traders should bear in mind that the breakout on September 12 might be followed by a retracement down to the upper channel boundary. This level coincides with the 200– and 100-hour SMAs and the weekly PP.
By and large, the ascending wedge is likely to be breached in the following hours. From theoretical point of view, it should happen to the downside, thus favouring a decline down to the 3.42/43 area.
Trend indicators suggest that the up-trend is still solid; however, other types of indicators favour a possible downside momentum. In case it is only a minor correction against the general trend, the fall should be limited by the 23.6% Fibo and the weekly R1 near 3.4495. On the other hand, traders should bear in mind that the breakout on September 12 might be followed by a retracement down to the upper channel boundary. This level coincides with the 200– and 100-hour SMAs and the weekly PP.
By and large, the ascending wedge is likely to be breached in the following hours. From theoretical point of view, it should happen to the downside, thus favouring a decline down to the 3.42/43 area.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.