USD/TRY Outlook: Bears Are Consolidating Above Psychological 7.00 Support

Technical analysis of Forex market

The USDTRY holds in sideways mode above psychological 7.00 support for the third day, following 3.5% drop last week.

Larger bears face headwinds as corporate buyers are seen at 7.00 zone, also reinforced by the top of rising thick daily cloud (6.9100).

Fresh dollar’s weakness and lira being one of the favorite in emerging markets, continue to weigh, with consolidation on oversold daily studies expected to precede fresh push lower.

Upticks towards 7.20/23 zone (falling daily Tenkan-sen/former low of Jan 7) should provide better levels to re-enter bearish market.

Clear break of 7.00/6.91 pivots would open way for test of 6.8862 (Fibo 61.8% of 5.8382/8.5816 rally) and 6.8155 (21 July low).

Res: 7.1565, 7.2099, 7.2370, 7.2842
Sup: 7.0273, 7.0000, 6.9100, 6.8862