Lira lost traction after thick daily cloud stopped rise; Fed and CBRT policy meetings in focus
The USDTRY advances for the second straight day after the pullback from new record high (8.7536) lost power on approach to thick rising daily cloud (cloud top lays at 8.20), with double failure at 55DMA (8.2781) and subsequent bounce, signaling bear-trap.
Long tails of Fri/Mon daily candles point to strong headwinds that bears faced, as quick recovery retraced over 50% of 8.7536/8.2430 pullback, generating initial signal of an end of corrective phase.
Fresh bullish momentum on daily chart and north-heading RSI/Stochastic support the action which needs break and close above 10DMA (8.5156) and Fibo 61.8% of 8.7536/8.2430 (8.5586) to confirm reversal.
Investors await Fed’s verdict on Wednesday and CBRT policy meeting (the central bank is expected to keep rates unchanged at 19%) for more direction signals.
Res: 8.5586; 8.6000; 8.6331; 8.7000
Sup: 8.5000; 8.4527; 8.4104; 8.2822