- USD/TRY faces 50-SMA resistance on its way to 200-SMA.
- Bulls remain hopeful while above 21-SMA support.
- RSI points north, holding into the bullish region.
USD/TRY continues to find dip-buying so far this Wednesday but the buyers are struggling to make the most of the opportunity, undermined by the fresh leg down in the US dollar.
The greenback pares early gains, as the risk sentiment improves in the European session. Strong EU earnings reports overshadow the Delta covid variant-related concerns, for the time being, offering a little boost to the market sentiment while weighing on the safe-haven dollar.
From a near-term technical perspective, USD/TRY briefly regained the downward-sloping 50-Simple Moving Average (SMA) at 8.5918 to reach fresh daily highs at 8.6063.
But the bears quickly fought back control, now making it an uphill battle for the bulls to reclaim the lost ground.
Acceptance above the 50-SMA barrier will call for an advance towards the horizontal 200-SMA at 8.6291.
The next significant upside target is seen at the mildly bearish 100-SMA at 8.6405.
The Relative Strength Index (RSI) trades firmer above the central line, backing the case for additional gains.
USD/TRY: Four-hour chart
On the downside, the horizontal 21-SMA at 8.5599 is the level to the beat for the bears in the near term.
The July 20 low of 8.5133 could help limit the decline in the spot, as 8.50 remains at risk should the selling pressure intensify.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
USD/JPY off lows, stays pressured near 142.50 ahead of BoJ policy decision
USD/JPY has bounced off lows but remains pressured near 142.50 in the Asian session on Friday. Markets turn risk-averse and flock to the safety in the Japanese Yen while the Fed-BoJ policy divergence and hot Japan's CPI data also support the Yen ahead of the BoJ policy verdict.
AUD/USD bears attack 0.6800 amid PBOC's status-quo, cautious mood
AUD/USD attacks 0.6800 in Friday's Asian trading, extending its gradual retreat after the PBOC unexpectedly left mortgage lending rates unchanged in September. A cautious market mood also adds to the weight on the Aussie. Fedspeak eyed.
Gold price treads water below record peak, awaits Fedspeak
Gold price hovers below the all-time peak touched earlier this week amid a bearish US Dollar and rising bets for more upcoming rate cuts by the Fed. Concerns over an economic downturn in China keep the safe-haven Gold price afloat. Fedspeak remains on tap.
Bank of Japan set to keep rates on hold after July’s hike shocked markets
The Bank of Japan is expected to keep its short-term interest rate target between 0.15% and 0.25% on Friday, following the conclusion of its two-day monetary policy review. The decision is set to be announced during the early Asian session.
XRP eyes gains as Ripple gears up for stablecoin launch, Grayscale XRP Trust notes rising NAV
Ripple (XRP) gained 2.3% since the start of the week. The altcoin’s gains are likely powered by key market movers that include Ripple USD (RUSD) stablecoin, Grayscale XRP Trust performance and the demand for the altcoin among institutional investors.
Moneta Markets review 2024: All you need to know
VERIFIED In this review, the FXStreet team provides an independent and thorough analysis based on direct testing and real experiences with Moneta Markets – an excellent broker for novice to intermediate forex traders who want to broaden their knowledge base.