USD/TRY Launches Out Of Descending Wedge
FOREX.com | Oct 08, 2019 06:55
Last Thursday, Turkey’s inflation data came out much worse than expected at 9.26% vs 15.51% expected and 15.01% last. With this drop in inflation, we discussed the possibility of USD/TRY breaking out of descending wedge on a 240-minute timeframe. Today, price not only broke out of the descending wedge, but also broke out of a symmetrical triangle on the daily timeframe, which USDT/TRY has been in since August 2018. Price gapped higher on the open and is up over 2.5% on the day.
Over the weekend, President Trump made a decision to pull US forces out of northeastern Syria. Today President Trump defended his decision, which makes it possible for Turkey to launch an attack on Kurdish fighters. The Turkish Lira was hit hard, and USD/TRY continued higher throughout the day.
The target for the breakout of a descending wedge is a retracement of the whole wedge. Now that price has broken through the 50% Fibonacci retracement level from the August 26th September 30th at 5.8206, the top of the descending wedge is in sight near 5.85. There is a strong resistance zone there, from 5.8500 to 5.8635, which is the 61.8% Fibonacci retracement level from the previously mentioned dates. If price breaks through there, it may tear up to 6.00, the spike highs from August 26th. First support is at the highs if the false breakout from October 2nd at 5.7575. Below that, the next support level is the gap from overnight down to 5.6978.
Watch for more comments from public officials, tweets from Trump regarding the situation, or military escalations in the area to determine the next direction for USD/TRY.
Get The App
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.