USDTRY continues to rally, supported by bullish techs and lira’s negative sentiment
The USDTRY pair extends steep rally into fourth straight day on Thursday and hit new 4 ½ month high at 3.8989, on probe above previous high at 3.8960 (14 Dec).
Firmly bullish techs continue to underpin the pair, as bullish signal was generated on Tuesday after rally emerged above thick daily cloud, with negative sentiment on economic and political issues in Turkey, pressuring lira.
Fresh bullish extension broke firmly above cracked barrier at 3.8798 (Fibo 61.8% of 3.9814/3.7153 correction leg) with confirmation of strong bullish signal seen on close above it.
Former high at 3.8960 has been cracked and sustained break higher would open way towards record high at 3.9814 and psychological 4.00 barrier.
Corrective easing should be anticipated in the near-term as daily RSI turned sideways on overbought zone border, while slow stochastic is reversing in overbought territory and is expected to generate stronger signal on reversal.
Solid support lies at 3.8450 zone, provided by top of daily cloud and highs of 3.7200/3.8550 consolidation range, where extended dips should find ground.
Res: 3.8989; 3.9186; 3.9450; 3.9726
Sup: 3.8798; 3.8556; 3.8450; 3.8185