USD/TRY is hovering close to fresh all-time highs of 9.04, as the bulls gather strength for the next push higher.
In doing so, the pair extends its bullish momentum into the third straight day, eyeing fresh record highs in the coming sessions.
The upside potential is well depicted by USD/TRY’s daily technical setup, which shows that the pair confirmed a bull pennant breakout on the said time frame last Friday after closing above the falling trendline resistance, then at 8.92.
With the big technical breakout, the upside opens up towards the measured target of 9.61. Ahead of that the 9.50 psychological level could come into play.
Impending bull cross, with the 50-Daily Moving Average (DMA) set to cross the 100-DMA for the upside, adds credence to a potential move higher.
However, with the 14-day Relative Strength Index (RSI) trending within the overbought territory, there remains a risk for a minor pullback before the next upswing kicks in.
On the downside, the bull pennant resistance now turned support at 8.92 will offer immediate respite to the buyers on any pullbacks.
Further south, the original support of the bullish continuation pattern at 8.88 could challenge the buyers’ commitments.
A breach of the latter on a daily closing basis will lead to a pattern failure, opening floors for a test of the bullish 21-DMA at 8.76.
Risk Warning: Trading Forex and CFDs on margin carries a high level of risk and may not be suitable for all investors. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 72.72% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Prior to trading, you should take into consideration your level of experience and financial situation. TeleTrade strives to provide you with all the necessary information and protective measures, but, if the risks seem still unclear to you, please seek independent advice.
© 2011-2021 Teletrade-DJ International Consulting Ltd
Teletrade-DJ International Consulting Ltd is registered as a Cyprus Investment Firm (CIF) under registration number HE272810 and is licensed by the Cyprus Securities and Exchange Commission (CySEC) under license number 158/11.
The company operates in accordance with the Markets in Financial Instruments Directive (MiFID).
The content on this website is for information purposes only. All the services and information provided have been obtained from sources deemed to be reliable. Teletrade-DJ International Consulting Ltd ("TeleTrade") and/or any third-party information providers provide the services and information without warranty of any kind. By using this information and services you agree that under no circumstances shall TeleTrade have any liability to any person or entity for any loss or damage in whole or part caused by reliance on such information and services.
TeleTrade cooperates exclusively with regulated financial institutions for the safekeeping of clients' funds. Please see the entire list of banks and payment service providers entrusted with the handling of clients' funds.
Teletrade-DJ International Consulting Ltd currently provides its services on a cross-border basis, within EEA states (except Belgium) under the MiFID passporting regime, and in selected 3rd countries. TeleTrade does not provide its services to residents or nationals of the USA.