EURTRY finds buyers at key support level
Euro/Turkish Lira (EURTRY) Technical Analysis Report for Jun 14, 2019 | by Techniquant Editorial Team
EURTRY ended the week 0.03% higher at 6.6126 after losing 165 pips (-0.25%) today. Trading 730 pips higher after the open, EUR/TRY was unable to hold its gains as the bears took control ending the day below its opening price. The last time this happened on Wednesday, EURTRY actually gained 1.05% on the following trading day. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (EURTRY as at Jun 14, 2019):
Friday's trading range has been 1099 pips (1.66%), that's slightly above the last trading month's daily average range of 1033 pips. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for EURTRY.
Two candlestick patterns are matching today's price action, the Bearish Spinning Top and the Shooting Star which are both known as bearish patterns.
After trading down to 6.5910 earlier during the day, the forex pair bounced off the key technical support level at 6.6045 (S1). The failure to close below the support could increase that levels significance as support going forward.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Selling might accelerate should prices move below the nearby swing low at 6.5209 where further sell stops could get activated.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Support S1" stand out. Its common bullish interpretation has been confirmed for EUR/TRY. Out of 165 times, EURTRY closed higher 51.52% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 59.39% with an average market move of 0.87%.
With four out of the seven Major FX Pairs closing lower today, the ones that stand out on the negative side are NZDUSD losing -1.14% and GBPUSD closing -0.66% lower. On the flipside the best performers have been USDCAD closing 0.65% higher and USDCHF gaining 0.48%. Looking at the other Minor FX Pairs and Crosses, the winners of the day have been USDHUF surging 0.73% and USDPLN closing 0.63% higher. The worst performers of the day have been NZDHKD tanking -1.15% and GBPZAR closing -1.01% lower. Read more