Turkish President Tayyip Erdogan urged Turkish people and firms on Wednesday to turn their foreign currency savings into lira to help increase demand for the local currency, in an apparent bid to avoid an economic crisis. The government promises it will deal with USDTRY volatility soon. However, TA may suggest further depreciation of the lira. However, you should also watch the news closely as any foreign exchange deal from Ankara should affect the price.
Most likely, for the USDTRY pair, the market is directed in an upward direction, forming a bullish trend that moves within a large green channel.
Over the past month, the price has gone from the lower green line to the upper green line. At the end of December, the bulls reached the upper green wall and then pushed off from it. The last section of the chart describes an ascending channel of yellow color.
Currently, the price is in the lower yellow area. There is a chance that the bears will be able to push the market to the lower yellow wall and the support level of 13.137. In case of a successful breakdown, they will have a clear path to the lower green line and a support level of 10.567.
However, the last price movement is more like a flat, it can be assumed that soon after the end of the correction, the market will continue to move in the same direction in which it moved before the correction, that is, up. In this variant, a bullish movement is expected in the direction of the upper yellow wall to the resistance level of 16.365. If this price level breaks, the way will open for the bulls to the upper green line and the resistance level of 18.841.
When confirming the first option, it is recommended to consider opening short positions, and when confirming a bullish trend, it is worth thinking about opening long positions.
