USDTRY – signals of reversal are building
The USDTRY bulls show strong hesitation under new 11-month high at 3.9007 as price action remains shaped in tight daily Doji candle for the second day.
Recent repeated upside failures suggest bulls may be running out of steam ahead of all-time high at 3.9414, posted in January.
Reversal of daily RSI / slow stochastic from overbought territory and bearish divergence that formed on both indicators, warn of pullback.
Rising 10SMA (currently at 3.8365) which tracks ascend since mid-September, marks initial pivot, loss of which would generate fresh bearish signal and risk extension towards 3.7653 (30 Oct trough, reinforced by rising 20SMA).
The pair is on track for bearish weekly close, the first after three straight bullish weeks which raises fears of pullback.
Meanwhile, extended sideways mode could be expected while 10SMA contains.
Res: 3.8790; 3.9079; 3.9100; 3.9414
Sup: 3.8491; 3.8365; 3.8210; 3.7948