USD/TRY: Downside opening up towards 3.6340 - Natixis

Analysts at Natixis provide a brief technical outlook for trading USD/TRY in the short to medium-term.

Key Quotes:

“The cross has corrected markedly since the end of January, which has triggered a sharp deterioration in the ST technical pattern.”

“The increase in the daily volatility and the turnaround of the daily indicators indeed plead for further downside all the more so as the weekly stochastic has turned bearish.”

“Against this backdrop, rallies should be short lived and a decline to 3.6340 (monthly Bollinger upper band) is rather on the cards.”

“Note that a break below this threshold would unleash added downside potential to 3.5530 (Fibonacci extension) and 3.4245 (weekly Bollinger moving average). The resistances are located at 3.7660-3.7820, at 3.8820 and at 3.95.”