USD/TRY Price Analysis: Struggling to find a foothold above 8.60

  • 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.

Feed news

How do emotions affect trade?
Follow up our daily analysts guidance

Subscribe Today!    

Latest Forex News

Latest Forex News

Editors’ Picks

EUR/USD remains pressured after US data misses estimates

EUR/USD has rocked and rolled in response to US consumer data. The Federal Reserve's critical meeting is in the spotlight. Mid-September's daily chart is painting a mixed picture. The FX Poll is pointing to short-term falls and a bullish trend afterward.


GBP/USD trades under 1.38 amid on UK data, dollar strength

GBP/USD is on the back foot, trading under 1.38 after UK Retail Sales figures disappointed with -0.9% in August, worse than expected. Brexit uncertainty and dollar demand weighed on the pair earlier. 


Gold bears in driver's seat as focus shifts to FOMC

Gold started the week in a relatively calm manner and continued to fluctuate in the previous week’s horizontal channel on Monday. Gold's technical outlook turned bearish following Thursday's sharp decline. Next target on the downside for XAU/USD is located at $1,730.

Gold News

Experts say Ripple will win SEC lawsuit, which might propel XRP to new all-time highs

The latest development in the ongoing SEC vs. Ripple lawsuit is that documents are classified as privileged and blocked for public viewing. Though institutional investors are yet to take big bets on the altcoin in 2021, retail investors are actively trading in XRP.

Read more

Central Bank fest

In terms of central bank meetings, the week ahead is one of the busiest.  No fewer than 13 central banks hold policy meetings, divided between six major and seven emerging markets.  While the significance of US monetary policy for the world makes the FOMC meeting a highlight.

Read more