USD/TRY Price Analysis: Mildly bid on Friday’s Doji but bears are not out of woods
- USD/TRY bounces off seven-week low, posts the biggest daily gain since mid-July.
- Bullish candlestick formation backs the rebound but previous support line, resistance from June 25 challenge buyers.
- 100-DMA adds to the downside filters before June’s low.
USD/TRY picks up bids to 8.4647, up 0.13% intraday, ahead of Monday’s European session. The Turkish lira (TRY) pair dropped to the lowest since June 1 the previous day, before bouncing off 8.3910 to close with minimal losses, which in turn propelled a Doji candlestick for Friday.
While the countertrend traders may cheer bullish Doji, the previous support line from mid-April, near 8.5000, guards immediate recovery moves of the pair.
Also challenging the USD/TRY bulls is a five-week-old resistance line close to 8.6085.
It should be noted, however, that a clear run-up beyond 8.6085 will aim for an 8.8050 key hurdle.
Alternatively, a daily closing below 8.3910 will reject the bullish candle and direct the quote to a 100-DMA level of 8.3750.
However, any further weakness will make the quote vulnerable to decline towards June’s low of 8.2775.
To sum up, USD/TRY remains bearish but short-term bounce can’t be ignored.
USD/TRY: Daily chart
Trend: Bearish