USD/TRY, D1

On the daily chart, the price is moving up from the bottom MA of Bollinger Bands. A long-term uptrend does not seem to be broken yet as EMA130 is still directed up, while the RSI failed it support at 31.6. However, there is a chance that the pair has formed a double top formation earlier in September. If it is true, the critical point is going to be the area of 2.9744-2.9705, a breakout of which might resume the growth. The RSI and Composite are growing towards their MA’s, which indicate a weakness of the market as the shorter MA remains underneath the longer one.

USD/TRY: technical analysis

USD/TRY, H4

On the 4-hour chart, the price has nearly reached the upper MA of Bollinger Bands, which forms a strong resistance as it coincides with the 61.8% retracement near the level of 2.9595. The RSI and Composite formed a divergence warning of the approaching downward price reverse. The RSI is retesting its resistance that it failed to overcome yesterday.

USD/TRY: technical analysis

Key levels

Support levels: 2.9226 (50% retracement, middle MA of Bollinger Bands on the 4-hour chart), 2.8910 (psychologically important level), 2.8840 (early August lows).

Resistance levels: 2.9557 (October lows), 2.9595 (61.8% retracement), 2.9705 (beginning of September lows), 2.9744 (September lows), 2.9798 (50% retracement for a short-term trend).

Trading tips

Long positions can be opened after the breakout of the level of 2.9600 with the target at 2.9695 and stop-loss at 2.9557. Validity – 1-2 days.

Short positions can be opened below the level of 2.9226 with the target at 2.8922 and stop-loss at 2.9260. Validity – 1-3 days.




The material published on this page is produced by LiteForex and should not be considered as the provision of investment advice for the purposes of Directive 2004/39/EC; furthermore it has not been prepared in accordance with legal requirements designed to promote the independence of investment research and is not subject to any prohibition on dealing ahead of the dissemination of investment research.



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