USD/TRY 1H Chart: Short-term appreciation expected
Updated
After reaching a new many-year high against the Turkish Lira three weeks ago, the US Dollar began depreciating in a short-term channel down. This pattern was breached in this session due to the bullish pressure of the most senior pattern near 4.04.
It is likely that the pair still tries to push higher in this session towards the monthly R1 or the aforementioned high at 4.14 and 4.1820, respectively. Additional bullish signals are provided by the fact that the pair surpassed the strong resistance cluster of the 55-, 100– and 200-hour SMAs and the weekly PP today.
Meanwhile, technical indicators on the daily time-frame suggest that some medium-term decline could be under way after this short-term surge.
It is likely that the pair still tries to push higher in this session towards the monthly R1 or the aforementioned high at 4.14 and 4.1820, respectively. Additional bullish signals are provided by the fact that the pair surpassed the strong resistance cluster of the 55-, 100– and 200-hour SMAs and the weekly PP today.
Meanwhile, technical indicators on the daily time-frame suggest that some medium-term decline could be under way after this short-term surge.
Comment
Zoom out... The US Dollar recently met with dominant resistance against the Turkish Lira just below the 4.30 mark. Due to that reason Forex market participants can expect a decline of the rate in the medium and short terms.
However, the currency pair is set to meet with various support levels throughout its decline. First will come the lower trend line of the junior ascending pattern, which guided the rate to the dominant resistance.
Afterwards, the rate is set to meet the combined support of the various SMAs and pivot points near 4.20, 4.15 and 4.07. However, the last support level is highly unlikely to be reached for.
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.