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Technical Analysis – USD/TRY could advance

USD/TRY 29/03/19 | EconAlerts

USD/TRY could see further improvement in the near term.

USD/TRY has advanced above the 20- and 40-day simple moving averages (SMAs) and the 23.6% Fibonacci retracement level of the sell-off from 7.1135 to 5.1330, around 5.5970 on Friday. Over the last couple of days, the price has been paring the losses that were posted at the beginning of this week, creating sessions with strong momentum.

Looking at the technical indicators, the stochastic is switching to the upside after the rebound on the 20 level and the bullish cross within the %K and %D lines. Furthermore, the RSI indicator is heading higher in the positive zone.

If the market corrects higher, the bullish action may pause initially near 5.7940 before attention shifts to the 38.2% Fibonacci of 5.8855. A rally on top of the latter would probably stage fresh buying pressure, with the price moving next to the 50.0% Fibonacci of 6.1200.

On the other hand, dropping below the SMA could see losses extending towards the 5.3000 critical level. Even lower, the bears could stall around 5.1330 where the November sell-off stopped.

The recent bullish action turned the weak momentum to a more aggressive one, with the shorter-term moving averages (MA) increasing distance above the longer-term Mas, so we could expect further improvement in the market.


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This information is not considered as investment advice or investment recommendation but instead a marketing communication. This material has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and that it is not subject to any prohibition on dealing ahead of the dissemination of investment research.

Source: XM

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