USD/TRY Price Analysis: Struggles for a firm direction, stuck in a range above 200-hour SMA

USD/TRY extends its consolidative price move and remains confined in a range.
The technical setup supports prospects for some meaningful appreciating move.
A break below the ascending trend-line support will negate the positive outlook.

Haresh Menghani FXStreet

The USD/TRY pair struggles to capitalize on the overnight goodish rebound from the 26.15 area, or a four-day low and oscillates in a narrow band through the Asian session on Tuesday. Spot prices currently trade just above the 26.75 region, nearly unchanged for the day.

From a technical perspective, the recent recovery from the 25.30 zone, or a nearly two-month low touched in August, has been along an upward-sloping sloping trend-line. Moreover, the USD/TRY pair now seems to have found acceptance above the 200-houe Simple Moving Average (SMA), which, along with positive oscillators on daily/hourly charts, supports prospects for some meaningful appreciating move.

Hence, a subsequent move up, back towards reclaiming the 27.00 round-figure mark, looks like a distinct possibility. Some follow-through buying beyond the next relevant hurdle near the 27.25 region should allow the USD/TRY pair to aim back to challenge the all-time high, around the 27.85-27.90 zone set in August. This is followed by the 28.00 mark, which if cleared will be seen as a fresh trigger for bullish traders.

On the flip side, the 26.55-26.50 area, or the 200-hour SMA, could protect the immediate downside ahead of the aforementioned trend-line support, currently around the 26.35 region. The latter should act as a pivotal point, which if broken decisively might shift the bias in favour of bears. Some follow-through selling below the overnight swing low, around the 26.15 region, will reaffirm the negative outlook.

The USD/TRY pair might then turn vulnerable to weaken further below the 26.00 mark and accelerate the downfall towards the 25.70-25.65 intermediate support en route to mid-25.00s and the August monthly swing low, around the 25.30 region.

USD/TRY 1-hour chart

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

EUR/USD remains weak near 1.1800

EUR/USD rapidly fades Tuesday’s uptick and resumes its weekly retracement, challenging the 1.1800 support at the end of the NA session on Wednesday. The pair’s drop comes in response to extra gains in the US Dollar. Moving forward, the ECB meets on Thursday and is seen leaving its policy rate unchanged.

GBP/USD churns near 1.3700 ahead of BoE rate call

GBP/USD remains trapped in a near-term cycling pattern on Wednesday, continuing to churn aimlessly between 1.3700 and 1.3650. Cable traders are unlikely to pick a meaningful direction until after the Bank of England’s latest interest rate decision, due during Thursday’s London market session.

Gold stays offered below $5,000

Gold is back under pressure on Wednesday, slipping below the $5,000 mark per troy ounce as Wednesday’s session draws to a close. The pullback comes amid renewed strength in the US Dollar alongside mixed moves in US Treasury yields across the curve.

Dogecoin plummets as retail investors exit amid broad market sell-off

Dogecoin holds near support at $0.1000 at the time of writing on Wednesday, as bears tighten their grip on assets across the crypto market. The leading meme coin remains on the back foot, weighed down by risk-off sentiment, low retail activity and weak technicals.

The AI mirror just turned on tech and nobody likes the reflection

Tech just got hit with a different kind of selloff. Not the usual rates tantrum, not a recession whisper, not even an earnings miss in the classic sense. This was the market staring into an AI mirror and recoiling at its reflection.

Ripple stabilizes amid mixed signals as ETF inflows resume despite low retail activity

Ripple hovers around the $1.60 pivotal level at the time of writing on Wednesday, reflecting stable but weak sentiment across the crypto market. Intense volatility triggered a brief sell-off on Tuesday, driving the remittance token to pick up liquidity at $1.53 before recovering to the current level.