Last week, the Turkish central bank made a significant move by raising rates by 750 basis points. This caused a sharp downward movement in the US dollar relative to the Turkish lira. Since then, there has been a notable response, with the market showing a sharp rebound.
During times of such volatile market reactions, it's valuable to examine Fibonacci retracements. These retracements help us predict potential new support and resistance levels in the market. Looking ahead, we can pinpoint key levels of support and resistance. The first is the 38.2% retracement, approximately at 26.00/25.98. The second notable level is the 78.6% retracement, approximately at 26.80. It's likely that the market will move within these boundaries as it absorbs and adapts to the unexpected rate increase.
Disclaimer:
The information posted on Trading View is for informative purposes and is not intended to constitute advice in any form, including but not limited to investment, accounting, tax, legal or regulatory advice. The information therefore has no regard to the specific investment objectives, financial situation or particular needs of any specific recipient. Opinions expressed are our current opinions as of the date appearing on Trading View only. All illustrations, forecasts or hypothetical data are for illustrative purposes only. The Society of Technical Analysts Ltd does not make representation that the information provided is appropriate for use in all jurisdictions or by all Investors or other potential Investors. Parties are therefore responsible for compliance with applicable local laws and regulations. The Society of Technical Analysts will not be held liable for any loss or damage resulting directly or indirectly from the use of any information on this site.
During times of such volatile market reactions, it's valuable to examine Fibonacci retracements. These retracements help us predict potential new support and resistance levels in the market. Looking ahead, we can pinpoint key levels of support and resistance. The first is the 38.2% retracement, approximately at 26.00/25.98. The second notable level is the 78.6% retracement, approximately at 26.80. It's likely that the market will move within these boundaries as it absorbs and adapts to the unexpected rate increase.
Disclaimer:
The information posted on Trading View is for informative purposes and is not intended to constitute advice in any form, including but not limited to investment, accounting, tax, legal or regulatory advice. The information therefore has no regard to the specific investment objectives, financial situation or particular needs of any specific recipient. Opinions expressed are our current opinions as of the date appearing on Trading View only. All illustrations, forecasts or hypothetical data are for illustrative purposes only. The Society of Technical Analysts Ltd does not make representation that the information provided is appropriate for use in all jurisdictions or by all Investors or other potential Investors. Parties are therefore responsible for compliance with applicable local laws and regulations. The Society of Technical Analysts will not be held liable for any loss or damage resulting directly or indirectly from the use of any information on this site.
The STA is the oldest technical analysis organisation in the world and to celebrate that fact, we have a free downloadable book on technical analysis here -
www.technicalanalysts.com
www.technicalanalysts.com