USD/TRY 1H Chart: Pair is strongly overbought
The last four weeks have been profitable for USD/TRY bulls, as the US Dollar has appreciated by 20% against the Turkish Lira. This upside momentum intensified mid-July when the 55-hour SMA provided enough support to guide the pair towards a new peak at 5.40.
Given that this level coincides with the upper boundary of three ascending channels, it seems that the Greenback might be ready to give up its strong position, at least in the short term. In addition, technical indicators are located in the strongly overbought territory which should soon make this up-move unsustainable.
Thus, it is expected that the pair’s direction during the following two weeks would be south down to the 55– and 100-period (4H) SMAs and the medium-term channel at 5.05.
Given that this level coincides with the upper boundary of three ascending channels, it seems that the Greenback might be ready to give up its strong position, at least in the short term. In addition, technical indicators are located in the strongly overbought territory which should soon make this up-move unsustainable.
Thus, it is expected that the pair’s direction during the following two weeks would be south down to the 55– and 100-period (4H) SMAs and the medium-term channel at 5.05.