USD/TRY: pair correcting down

January 14, 2016

Current trend

Yesterday the pair fell and moved away from local highs. A downward correction in the pair was happening amid growing risk appetite on the market after the publication of strong data on the Chinese Trade Balance that lowered worries on the markets.

At the same time, the pair is pressured by strengthening US Dollar. In addition, on Tuesday the Turkish stock index Borsa Istanbul 100 showed a sharp decline after the news about explosion in tourist district of Istanbul came out, thus pressuring the Lira.

Support and resistance

Bollinger Bands on the daily chart is growing while the price range is widening from the top. At the same time, the indicator has formed a signal for correctional decline. MACD is trying to turn down forming a sell signal. Stochastic left the overbought zone indicating a downward correction in the pair.

The indicators recommend considering short positions.

Support levels: 3.0050 (local low), 2.9837 (8 January low), 2.9573, 2.9295, 2.9000 (beginning of December low), 2.8702 (3 December low).

Resistance levels: 3.0268 (local high), 3.0476 (12 January high), 3.0678 (29 September high), 3.0742 (24 September high).

Trading tips

Long positions can be opened after the breakout of the levels of 3.0268, 3.0476 (with the appropriate indicators signals) with targets at 3.0678, 3.0742 and stop-loss between 3.0050 and 3.0268. Validity – 2-3 days.

Short positions can be opened after the price consolidation below the level of 3.0050 with the target at 2.9800 and stop-loss at 3.0150. Validity – 2-4 days.

Publication source
LiteForex information  LiteForex reviews

September 30, 2016
Euro continues to trade sideways inside a 100pips range
Looking at the hourly chart, the pair still fighting to overtake 1.1235 barrier, which is considered as the near-term resistance for the single currency...
September 29, 2016
Will Brexit be more painful for Europe rather than for the UK?
The risk is increasing on the market ahead OPEC meeting in Algiers and Yellen testimonial, which will happen before the House panel. FED-fueled rally on gold starts to fizzle out as the December futures keep on a losing streak for a second day, finally dipping by 0.12% to 1,328.75...
September 28, 2016
US presidential debate moves unwind
The market’s initial response to the US presidential election debate overnight was a clear sigh of relief. The Mexican Peso, which had hit a record low against the dollar just the day before, surged higher, as too did the Canadian dollar...

FBS Rating
FXCM Rating
Vantage FX Rating
HYCM Rating
HotForex Rating
Grand Capital Rating

OptionTrade Rating
TopOption Rating
Beeoptions Rating
OptionBit Rating
OptionsXO Rating
365BinaryOption Rating