USD/TRY Price Analysis: Remains trapped between two key barriers

USD/TRY consolidates in a tight range, awaits fresh impetus.
Bullish bias intact while above 21-DMA, as RSI holds above 50.00
8.80 is the level to beat for the bulls, focus shifts to US ADP jobs.

Dhwani Mehta FXStreet

USD/TRY is holding the lower ground in the European mid-morning, having faced stiff resistance at Tuesday’s high of 8.7495 earlier in the late-Asian trades.

Despite the persistent upbeat mood around the US dollar, amid Delta strain worries and Fed’s hawkish turn, USD/TRY fails to benefit and flirt with daily lows of 8.6800, as of writing.

As observed on the daily chart, the spot extends its prison range into a fifth straight day this Wednesday, with the 8.80 barrier giving a tough fight to the bulls.

Meanwhile, the upward-sloping 21-Daily Moving Average (DMA) at 8.6351 continues to guard the downside.

Any sustained move below the latter could trigger a sharp sell-off towards the bullish 50-DMA at 8.7480. The next bearish target is envisioned at the June lows of 8.4469.

Note that the price has not given a daily closing below the 21-DMA since June 14.

USD/TRY: Daily chart

However, with the 14-day Relative Strength Index (RSI) still holding comfortably above the central line, the bullish undertone remains intact for the currency pair.

Acceptance above the horizontal trendline resistance at 8.80 could expose the 9.00 threshold, marking fresh record highs.

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

EUR/USD looks offered below 1.1900

EUR/USD keeps its bearish tone unchanged ahead of the opening bell in Asia, returning to the sub-1.1900 region following a firmer tone in the US Dollar. Indeed, the pair reverses two consecutive daily gains amid steady caution ahead of Wednesday’s key US Nonfarm Payrolls release.

GBP/USD slips back to daily lows near 1.3640

GBP/USD drops to daily lows near 1.3640 as sellers push harder and the Greenback extends its rebound in the latter part of Tuesday’s session. Looking ahead, the combination of key US releases, including NFP and CPI, alongside important UK data, should keep the pound firmly in focus over the coming days.

Gold the battle of wills continues with bulls not ready to give up

Gold remains on the defensive and approaches the key $5,000 region per troy ounce on Tuesday, giving back part of its recent two day. The precious metal’s pullback unfolds against a firmer tone in the US Dollar, declining US Treasury yields and steady caution ahead of upcoming key US data releases.

Bitcoin's downtrend caused by ETF redemptions and AI rotation: Wintermute

Bitcoin's (BTC) fall from grace since the October 10 leverage flush has been spearheaded by sustained ETF outflows and a rotation into the AI narrative, according to Wintermute.

Dollar drops and stocks rally: The week of reckoning for US economic data

Following a sizeable move lower in US technology Stocks last week, we have witnessed a meaningful recovery unfold. The USD Index is in a concerning position; the monthly price continues to hold the south channel support.

XRP holds $1.40 amid ETF inflows and stable derivatives market

Ripple trades under pressure, with immediate support at $1.40 holding at the time of writing on Tuesday. A recovery attempt from last week’s sell-off to $1.12 stalled at $1.54 on Friday, leading to limited price action between the current support and the resistance.