- USD/TRY kickstarts the new trading session with losses after Friday’s madness.
- Bulls fail to test the 9.0000 mark despite gaining more than 1% in the previous session.
- The momentum oscillator suggests overstretched buying opportunities.
USD/TRY edges lower on Monday in the initial European hours. The cross-currency pair peaked at all times near 9.0000 on Friday. The pair confides in a very narrow trade band with no meaningful traction. At the time of writing, USD/TRY is trading at 8.9639, down 0.21% for the day.
USD/TRY daily chart
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On the daily chart, the USD/TRY cross-currency pair has been in the upside momentum since the beginning of the September series. After consolidating in the four-session, the pair rallied on Friday. Now, the overbought Moving Average Convergence Divergence (MACD) signals some correction on profit booking. Furthermore, the formation of a Doji candlestick suggests indecisiveness among traders.
Having said that, If the price breaks the intraday low, it could return to the 8.9000 horizontal support level. Any downtick in the MACD would amplify selling pressure toward the low made on October 1 at 8.8200. A break below the 23.6% Fibonacci retracement, which extends from the low of September 3, at 8.8113 could drag USD/TRY toward the low of September 24 at 8.7623.
Alternatively, if the price reverses direction, it could test the all-time high at the 9.0000 mark for the first time, thus opening the gates for further gains for the pair.
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