USD/TRY 1H Chart: Soon breakout from triangle
The US Dollar spiked significantly against the Turkish Lira late in May as a result of which it surged up to a many-year high of 4.90.
The rate has since edged lower and is now trading in a descending triangle—the upper boundary of this pattern is a downward-sloping trend-line drawn from the aforementioned spike, while support is provided by the 4.45 level. This triangle has reached its maturity; thus a breakout and a subsequent movement in this direction should soon follow.
Longer-term technical indicators are in favour of a fall within the following month, at least. During this time, the downside potential is apparent until the 100-day SMA and the monthly S1 at 4.10. In case of an upside breakout, the Greenback should target the yearly-high at 4.90.
It should be noted that the Turkish Lira is dependent heavily on fundamental aspects; thus, they should also be taken into account when designing a trading strategy.
The rate has since edged lower and is now trading in a descending triangle—the upper boundary of this pattern is a downward-sloping trend-line drawn from the aforementioned spike, while support is provided by the 4.45 level. This triangle has reached its maturity; thus a breakout and a subsequent movement in this direction should soon follow.
Longer-term technical indicators are in favour of a fall within the following month, at least. During this time, the downside potential is apparent until the 100-day SMA and the monthly S1 at 4.10. In case of an upside breakout, the Greenback should target the yearly-high at 4.90.
It should be noted that the Turkish Lira is dependent heavily on fundamental aspects; thus, they should also be taken into account when designing a trading strategy.