Turkish Lira Price: USD/TRY May Reverse Direction as Support Stands
USD/TRY Price Forecast
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USD/TRY – From Bullish to Bearish
USD/TRY recently printed its highest level in two months. However, this week sellers have taken charge, hinting at more bearishness to come.
Alongside this, the Relative Strength Index (RSI) remained flat around 65, then fell sharply and crossed below 50 on Tuesday indicating to a possible start of downtrend momentum.
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USD/TRY DAILY PRICE CHART (May 28, 2018 – SEp 5, 2019) Zoomed Out
USD/TRY DAILY PRICE CHART (May 1– Sep 5, 2019) Zoomed In
Looking at the daily chart, we notice on Monday USD/TRY moved to a lower trading zone 5.6550 – 5.8224. Yesterday, the pair rebounded from the low end of the zone.
Thus, a successful close below the low end of the zone may continue bearish price action towards 5.4635. In that scenario, the weekly support area and levels marked on the char (zoomed in) should be kept in focus.
In turn, a close above the low end of the zone could reverse USDTRY direction sending it back to the high end. Further close above the high end may send the price towards 5.9617. Nonetheless, the weekly resistance levels underlined on the chart need to be followed closely.
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USD/TRY Four-HOUR PRICE CHART (Aug 8, – Sep 5, 2019)
Looking at the four-hour chart, we notice On Tuesday USD/TRY changed direction after breaking below the neckline of double top pattern at 5.7938. Since then, the price pressed to the downside and yesterday rebounded from the low end of the aforementioned trading zone.
Hence, a break below 5.6216 could mean more bearishness towards 5.5459. That said, sellers may need to pay attention to the weekly support level underscored on the chart. See the chart to know more about lower support levels USDTRY would encounter in a further bearish move.
On the other hand, a break above 5.7598 may push the price towards the high end of current trading zone. Although, the daily resistance level underlined on the chart should be considered. See the chart to find out more about higher resistance levels USDTRY would face if the price moves to the higher trading zone.
Written By: Mahmoud Alkudsi
Please feel free to contact me on Twitter: @Malkudsi
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.