USDTRY – steep rally approaches key barriers at 3.9814 /4.00
The USDTRY extends steep ascend into sixth straight day and hit new nearly four-month high at 3.9520 on Monday, after fresh bullish extension took out barrier at 3.9186 (Fibo 76.4% of 3.9814/3.7153 correction).
Record high at 3.9814 (22 Nov) is now exposed, with interim barrier at 3.9728 (28/29 Nov double-top) seen as the sole obstacle en-route.
Firmly bullish techs, accompanied with negative fundamentals (double-digit Turkish inflation; political uncertainty and war in Syria) keep lira under strong pressure.
Bulls are expected to attack new all-time high at 3.9814 and psychological 4.00 barrier in coming session, as Fed is meeting in Tue/Wed and hawkish comments could easily skyrocket the greenback through 4.00 barrier.
Strong bulls did not take any breather during past six days and overbought daily RSI / slow stochastic suggest bulls may enter consolidative phase before rallying through 3.9814/4.00 barriers.
However, pair’s firm bullish sentiment sees limited dips (likely to be contained by 3.90/3.88 zone) before bulls continue.
Res: 3.9520; 3.9726; 3.9814; 4.0000
Sup: 3.9186; 3.9000; 3.8800; 3.8578