USD/TRY Technical Analysis: Looking bearish, testing 8.0000

The Turkish lira remains near record low levels versus the US dollar.
The bullish momentum eased further in USD/TRY, correction likely to continue.

Matías Salord FXStreet

The USD/TRY jumped last week to all-time-highs above 8.5000, and it opened the current week with a bearish gap after news from Turkey. It dropped corrected further, finding support at the 8.00 area.

On Tuesday, USD/TRY peaked at 8.3800, but it was unable to hold above 8.30 and pulled back. In the short-term, while below 8.3000 (horizontal support and 21-SMA in 4-hours chart), the bias will point to the downside. The key support stands at 8.0000 and a break lower would clear the way for an extension of the correction, with an immediate target at 7.9000 followed by 7.8500.

On the upside, if USD/TRY breaks and remain above 8.3000, the bullish pressure will increase, exposing the next resistance at 8.4000 that protects the record highs.

USD/TRY 4-hour chart

Author

Matías Salord

FXStreet

Matías started in financial markets in 2008, after graduating in Economics. He was trained in chart analysis and then became an educator. He also studied Journalism. He started writing analyses for specialized websites before joining FXStreet.

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