Lira on track for the biggest daily fall after three-week rally
The USDTRY rises on Wednesday as pullback from new record high showed initial signs of losing traction after three-weeks of uninterrupted steady descend.
The pair is on track for the biggest one-day gains since hitting all-time high on 7 May, but more work at the upside is required to generate signal for stronger recovery.
Fresh advance emerged back above the top of rising daily cloud (6.7622) after bears penetrated cloud on Tuesday / today, but without close within the cloud so far.
Correction from record high should be ideally contained by thick rising daily cloud, before bulls re-assert, as larger uptrend is still in play and pullback is seen as positioning for fresh push higher.
Momentum turned north on daily chart after falling deeply into negative territory, with bullish divergence on daily stochastic adding to positive signals.
Recovery looks for initial signal on repeated close above cloud top and also break above 55DMA (6.7814) to attack next pivotal barrier at 6.8168 (falling 10DMA).
Caution on failure to clear 55DMA (which so far limited today’s recovery attempts) and dip into cloud, which would increase risk of further weakness.
Res: 6.7841; 6.8168; 6.8246; 6.9094
Sup: 6.6875; 6.6475; 6.6152; 6.5909