USDTRY – near-term action remains bearishly aligned as 20SMA caps
|USDTRY
The pair stays within larger 3.52/3.65 range in past couple of weeks, signaling possible basing of descend from 11 Jan record high at 3.9414. Short-term price action from correction low at 3.5187, posted on 02 May is holding within ascending channel, which keeps in play an idea of stronger recovery, as the notion is supported by weekly slow stochastic reversal from overbought territory.
However, series of weekly Dojis suggest no clear direction, with contracting 20d Bollinger bands on daily chart supporting for extended directionless trading.
Daily technical studies are bearish overall but weekly bulls remain in play that may trigger fresh weakness of Lira.
Near-term action is capped by 20SMA (currently at 3.5774) for the third day that may keep near-term risk shifted towards supports at 3.5513 and 3.5355, which guard key support at 3.5187.
Dollar's performance in the short term would signal short-term direction, however, stronger signals could be expected on break out of 3.52/3.65 range.
Res: 3.5775; 3.5930; 3.6000; 3.6244
Sup: 3.5575; 3.5513; 3.5355; 3.5187
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