USDTRY pulls back from fresh record high on weaker dollar

Slobodan Drvenica Windsor Brokers

USDTRY

The pair holds in red for the second day and extends pullback from record high at 3.9814 as the greenback came under pressure from dovish remarks from Fed policymakers on FOMC minutes on Wednesday.
This comes as a relief for Turkish lira which is under strong pressure.
Wednesday’s close in red which formed bearish outside day pattern, signals deeper correction.
Today’s fresh weakness eyes first pivot at 3.8934 (rising 10SMA) loss of which would expose next key support at 3.8530 (rising 20SMA).
South-heading slow stochastic which reversed just under overbought border, supports the notion.
Underlying strong uptrend sees limited corrective action (to be contained above 20SMA) ahead of fresh push higher for test of psychological 4.00 target.

Res: 3.9470; 3.9814; 4.0000; 4.0500
Sup: 3.9040; 3.8934; 3.8532; 3.8448

Author

Slobodan Drvenica

Windsor Brokers

Industry veteran with over 22 years’ experience, Slobodan Drvenica joined Windsor Brokers in 1995 when he was an active trader for more than 10 years, managing the trading desk and own account departments.

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