Bearish, test the 8.0000 level

  • The Turkish lira remains near record lows against the US dollar.
  • The bullish momentum waned further for USD / TRY, and the correction is likely to continue.

The USD/TRY jumped to all-time highs above 8.5000 last week, and opened the current week with a bearish gap following the news from Turkey. It corrected further lower, finding support at the 8.00 area.

On Tuesday, USD / TRY peaked at 8.3800 but failed to stay above 8.30 and pulled back. In the short term, as long as it is below 8.3000 (horizontal support and 21 SMA on the 4-hour chart), the bias will point to the downside. Key support is at 8.0000 and a break to the downside would clear the way for an extension of the correction, with an immediate target at 7.9000 followed by 7.8500.

On the upside, if the USD / TRY breaks and sustains above 8.3000, the upward pressure will build, exposing the next resistance at 8.4000 that protects the all-time highs.

4 hour chart

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Credits: Forex Street

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