Wednesday, October 23, 2019
Home > Posts > Technical Analysis – USD/TRY may need a bounce above 5.780

Technical Analysis – USD/TRY may need a bounce above 5.780

USD/TRY has been making lower highs and lower lows since early May, retracing more than half of the bullish wave with a bottom at 5.154 and a top at 6.243.

The smooth recovery in the MACD and the upward-sloping RSI are currently reflecting a bearish-to-neutral bias for the short-term as long as the former holds around its red signal line and the latter below 50.

Traders may ask for a closing price above 5.780 to allocate more funds to the market. Such a move would clearly violate the ongoing downward pattern, shifting resistance up to 5.930 once the 38.2% Fibonacci of 5.826 is breached too. Earlier the bulls may also meet a barrier between the descending line and the 50% Fibonacci of 5.700.

Alternatively, a slide below 5.500 could see a retest of the 4 ½-month low of 5.446. In case the latter fails to hold, support could be next found somewhere near 5.360, ahead of the 5.300 level.

In the medium-term picture, the sell-off from the 6.243 peak keeps the market bearish, with the falling 50-day SMA fading hopes for a brighter outlook.


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Disclaimer:
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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