The USD/TRY has exhibited the ability to prove bearish sentiment can create downward reversals within the forex pair the past day. However, the selling action within the USD/TRY cannot be described as strong and the bullish trend remains intact. Resistance levels above will likely continue to be targeted by speculators who believe the USD/TRY is a buying opportunity.
The USD/TRY is testing record highs, and its trading essentially is being conducted within a vacuum that doesn’t have a great deal of influence from the amount of global risk appetite being played out in other markets. The reason for this is that the USD/TRY has come under a cloud of suspicion from financial institutions because of the fiscal mismanagement of the current Turkish government.
Technically, the USD/TRY continues to project an incremental climb higher. Even in the midst of yesterday’s trading, the forex pair has displayed a higher support level than it has in previous days. Yes, the low water mark of 8.37000 was approached, but this happened on a temporary spike downwards and the USD/TRY promptly resumed it bullish stance. In early trading this morning, the price vicinity of 8.45000 is being approached and traders will keep the 8.51000 mark within their sights.
If the 8.50000 level produces sustained trading above this mark, traders will focus on higher targets short term. Speculators need to use limit orders within the USD/TRY to protect themselves against ugly fills which can happen because trading volume within the forex pair is not always full and sudden fluctuations can be produced. Speculators looking to pursue the USD/TRY’s upside should also know that patience is needed and monitoring the forex pair carefully needs to be practiced. Traders can also use take profit orders to try and take advantage of bullish moves which can sometimes disappear quickly if the trader doesn’t get their order in soon enough.
The USD/TRY continues to look like a speculative opportunity to take advantage of the weakened stature of the Turkish lira. Technical and fundamental reasons for the bullish momentum within the USD/TRY are not likely to reverse anytime soon. Yes, as yesterday’s trading proved, the forex pair is capable of bearish moves, but until key support levels are broken lower, pursuing buying positions of the USD/TRY remains an enticing trade.
Turkish Lira Short Term Outlook:
Current Resistance: 8.54000
Current Support: 8.39000
High Target: 8.70000
Low Target: 8.35000
