USDTRY – Pullback could extend towards rising daily cloud top

Slobodan Drvenica Windsor Brokers

USDTRY

Turkish lira received support from better than expected data and broke below 3.6610 base which contained several attempts lower during past over one week time. Bullish signals for lira came on break below 3.6610 and extension lower that cracked 3.6400 (50% of 3.3403/3.9416 upleg. Daily Tenkan-sen/Kijun-sen lines turned into bearish setup and support further downside that may extend towards 3.6120 (rising daily Ichimoku cloud, with penetration into cloud, capable of stretching towards 3.5700 (Fibo 61.8% retracement of 3.3403/3.9416) Meantime, bears may pause around 3.6400/3.6280 zone (the latter marks rising 55SMA), as slow stochastic on daily chart is oversold and is forming bullish divergence. South-heading daily Tenkan-sen (currently at 3.7060) should limit extended upticks and keep near-term bears in play. Studies on larger timeframes (weekly/monthly) are strongly overbought that increases possibilities of deeper correction of bull-phase from 2.92 zone (Aug 2016 higher base).

Res: 3.6710; 3.7060; 3.7263; 3.7587

Sup: 3.6409; 3.6280; 3.6000; 3.5700

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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