Since the beginning of October, the USD/TRY pair remains in a correction to the main trend within an ascending channel.
The pair was pressured by fall in demand for the USD amid reduced expectations on the market of an interest rate increase in the US before the end of the year, as well as growing Turkish stock market. In October, the BIST100 index grew by more than 7%.
Therefore, the correction in the pair should be considered only as an opportunity to open long positions.
Support and resistance
At present, the pair continues trading within a narrow descending channel, but with every next fall in the pair there is a large correction up. The pair has now nearly reached the lower border of the ascending channel at the level of 2.8450.
Key indicators confirm an upward reverse in the pair.
MACD on the daily chart is in the negative zone and its volumes are falling. The lower MA of Bollinger Bands coincides with the bottom border of the ascending channel and the upward reverse is expected after it is reached by the price. In addition, the price is in the Ichimoku cloud, the lower border of which also rests at the level of 2.8450 thus indicating a strong level of support.
Support levels: 2.8750, 2.8450, 2.8185, 2.7615, 2.7095.
Resistance levels: 2.9050, 2.9250, 2.9600, 3.0070, 3.0405, 3.0690.
Open long positions from current levels and from 2.8450 with targets at 3.0070, 3.0690 and stop-loss at 2.8170.