USDTRY bounces but risk of deeper pullback persists
The USDTRY pair recovers on Tuesday after losing nearly 1.5% on Monday. Pullback from Fri/Mon highs at 3.8890 was contained by rising daily Tenkan-sen (3.8202), keeping overall bullish structure intact for fresh upside action which could result in final push towards all-time high at 3.9414.
However, risk of fresh weakness exists, signaled by bearish divergence on daily RSI / slow stochastic, with repeated rejection at 3.8890 expected to increase downside risk.
Break below daily Tenkan-sen / 10SMA is needed to generate bearish signal for deeper correction.
Res: 3.8700; 3.8890; 3.9100; 3.9414
Sup: 3.8202; 3.8120; 3.8000; 3.7653