Today’s analysis for the USD/TRY starts from a look at the daily chart to get an idea of what the medium-term outlook is like. From the daily chart shown below, a key price level which is now acting as a medium-term resistance is identified.
This is the site at which price found support three times in December 2018 (1, 2 and 3), as well as once in January 2019 (point 4). Having been broken in late January, the key price level that ranges around 5.2645 is expected to perform a role reversal to resist attempts by price to move to the upside.
The active candle for the day has opened on a bullish note and is now testing this level. So even though the short-term bias for USD/TRY is bullish, we expect this price level to be tested several times in the course of the next few business days.
But what is price doing for the day within the context of the daily candle that is already trading higher than its opening price of 5.2198? The first hourly chart is compressed to show the relationship of the current price to historical price action. Current price level is shown to be at the site of previous support areas as identified in the daily chart.
However, we also see that other important price levels exist. Above the current price level of 5.2539, we have 5.3211 and 5.4022 as the next available resistance levels. We also see a trendline resistance that captures the highs of January 2019 price action. This trendline is expected to intersect the 5.3211 resistance in the near future, and this area will become relevant if the current resistance area is broken.
For the day, we see that price has been resisted at the R2 pivot level, and price is currently pulling back to the R1 pivot. It is possible that price may retrace fully to the R1 pivot, from where buyers may renew the push to send the price of USD/TRY further upwards. Ideally, this move should be accompanied by an increase in the volume bars to confirm the move.
Further support is provided by the 9-day EMA line, which is located directly under the existing candles and looks set to provide dynamic support to the price action. Any trades made to capitalize on short-term bullishness have to allow for retracements to viable support areas.
Key areas to watch are:
- The R1 support pivot at 5.2263. This was broken to the upside earlier today, but price was unable to breach R2 and has since stared to retrace back to R1. Role reversal is expected at this area.
- With reference to the daily chart, price will need to break above the 5.2645 price area with at least a 3% upside penetration (accompanied by an increase in buying volume), for the door to be opened for a chase of the 5.3211 resistance.
- The blue trendline that captures the lows of January 2019’s price action will serve as a support zone on the daily chart, if price fails to break the current daily resistance area.
This is the site at which price found support three times in December 2018 (1, 2 and 3), as well as once in January 2019 (point 4). Having been broken in late January, the key price level that ranges around 5.2645 is expected to perform a role reversal to resist attempts by price to move to the upside.
The active candle for the day has opened on a bullish note and is now testing this level. So even though the short-term bias for USD/TRY is bullish, we expect this price level to be tested several times in the course of the next few business days.
But what is price doing for the day within the context of the daily candle that is already trading higher than its opening price of 5.2198? The first hourly chart is compressed to show the relationship of the current price to historical price action. Current price level is shown to be at the site of previous support areas as identified in the daily chart.
However, we also see that other important price levels exist. Above the current price level of 5.2539, we have 5.3211 and 5.4022 as the next available resistance levels. We also see a trendline resistance that captures the highs of January 2019 price action. This trendline is expected to intersect the 5.3211 resistance in the near future, and this area will become relevant if the current resistance area is broken.
For the day, we see that price has been resisted at the R2 pivot level, and price is currently pulling back to the R1 pivot. It is possible that price may retrace fully to the R1 pivot, from where buyers may renew the push to send the price of USD/TRY further upwards. Ideally, this move should be accompanied by an increase in the volume bars to confirm the move.
Further support is provided by the 9-day EMA line, which is located directly under the existing candles and looks set to provide dynamic support to the price action. Any trades made to capitalize on short-term bullishness have to allow for retracements to viable support areas.
Key areas to watch are:
- The R1 support pivot at 5.2263. This was broken to the upside earlier today, but price was unable to breach R2 and has since stared to retrace back to R1. Role reversal is expected at this area.
- With reference to the daily chart, price will need to break above the 5.2645 price area with at least a 3% upside penetration (accompanied by an increase in buying volume), for the door to be opened for a chase of the 5.3211 resistance.
- The blue trendline that captures the lows of January 2019’s price action will serve as a support zone on the daily chart, if price fails to break the current daily resistance area.