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USDTRY hit record highs as it pressures the psychological 7.50 barrier. An ascension from the beginning of the year saw a pullback in May. After a lengthy consolidation, we have witnessed strong bullish behavior with prices moving far away from the Ichimoku cloud.
However, a recent bearish divergence on the momentum indicator sees that bulls could be exhausted. A pullback towards the previous high break at 7.26 could be the first target.
Further weakness could then pull prices towards the 23.6% Fibonacci retracement and into the cloud.
If prices stay engulfed in the cloud then further downside levels could be brought into play. Should the currency pair drop to 7.00, then a move to the yearly low of 5.85 could come into fruition.
A look on the 4-hour chart shows clearer resistance at the record high of 7.5. The previous bearish divergence could be a catalyst for potential weakness in the short-term.
Prices are closer to the Ichimoku cloud and are trading between both the Tenkan and Kij...
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