USDTRY – bears are taking a breather above daily cloud base
The USDTRY pair moved higher on Monday after larger bears found support at 3.7300 zone, just above daily cloud base at 3.7233.
Bears may take a breather as oversold slow stochastic also shows bullish divergence on daily chart and rising expectations for US rate hike could inflate the greenback further.
However, strong bearish setup of daily techs keeps risk at the downside, with firm break below daily cloud base to trigger extension towards 3.7092 (Fibo 76.4% of 3.6251/3.9714 upleg) and 100 SMA (3.6951) in extension).
Broken Fibo 61.8% marks initial resistance at 3.7612, followed by falling 10SMA at 3.7757 and descending 20SMA (3.7986), break above which would sideline bears and signal stronger correction of 3.9814/3.7303 downleg.
Res: 3.7612; 3.7757; 3.7788; 3.7986
Sup: 3.7303; 3.7233; 3.7092; 3.6930
