USDTRY closes higher for the 2nd day in a row
US Dollar/Turkish Lira (USDTRY) Technical Analysis Report for Dec 04, 2019 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, USDTRY finished Wednesday at 5.7495 gaining 77 pips (0.13%). Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (USDTRY as at Dec 04, 2019):
Wednesday's trading range has been 236 pips (0.41%), that's far below the last trading month's daily average range of 348 pips. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for USDTRY. Prices continued to consolidate within a tight trading range between 5.7309 and 5.7669 where it has been caught now for the last three trading days.
During the whole day, prices traded within the prior day's range, unable to trade above the previous day's high or below the prior day's low forming an Inside Bar.
The FX pair managed to close back above the 20-day moving average at 5.7433. The pair found buyers again today around 5.7349 for the third trading day in a row after having found demand at 5.7309 in the previous session and at 5.7358 two days ago. The last time this happened on November 22nd, USDTRY gained 0.52% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying could speed up should prices move above the nearby swing high at 5.7669 where further buy stops might get triggered. Selling could accelerate should prices move below the close-by swing low at 5.7309 where further sell stops might get activated. Further buying could move prices higher should the market test November's nearby high at 5.7969. Further selling might move prices lower should the market test November's close-by low at 5.6853.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bullish Break through SMA 20" stand out. Although it is usually interpreted as bullish, it has actually shown to be bearish for USD/TRY. Out of 154 times, USDTRY closed lower 55.19% of the time on the next trading day after the market condition occurred.
With four out of the seven Major FX Pairs closing higher today, the ones that stand out on the positive side are GBPUSD gaining 0.83% and USDJPY closing 0.21% higher. On the flipside the worst performers have been USDCAD closing -0.7% lower and EURUSD losing -0.04%. Looking at the other Minor FX Pairs and Crosses, the winners of the day have been GBPJPY surging 1.06% and GBPCHF closing 1.01% higher. The worst performers of the day have been EURGBP tanking -0.86% and EURCAD closing -0.74% lower. Read more