Technically the USD/TRY is trading at record highs and the currency pair is now perched close to the 27.21475 level. The higher value of the USD/TRY is a record price and it has continued to take incremental steps upwards. However, long-time traders of the USD/TRY have had to treat the Forex pair differently in the past two months. The sharp upward momentum of the USD/TRY seen in the previous couple of years with sudden bursts of price velocity has largely disappeared for the moment from the Forex market.
Speculators can no longer bet blindly on the USD/TRY marching higher. While the higher values of the USD/TRY cannot be denied, the ability of the currency pair to produce rather consolidated trading action has certainly created the need for new speculative tactics. The USD/TRY does not correlate to the broad market all of the time, The stronger USD the past month has certainly been a factor globally, but the upward trend of the USD/TRY has remained in tactic over the long term.
The USD/TRY 27.00000 Level has been tested for Over a Month
On the 18th of July, the suddenly went from around 26.25000 to 27.00000. This sudden jolt upwards however since this price velocity was demonstrated has slowed. The rather incremental steps of the USD/TRY mean that traders who are looking for higher values now likely have to be buyers after support levels have been approached.
Entry price orders remain important for the USD/TRY, but significantly targeting massive moves higher is no longer realistic. This means a trader has to likely hold onto a position longer than they may have gotten accustomed to in the past, and a good speculator has to be willing to change their trading techniques. Looking for quick-hitting nearby targets in the USD/TRY is important. Traders need to make sure they are not getting killed by hidden fees from their brokers for trading the USD/TRY.
Massive Volatility of the USD/TRY has Gone Away
- Because the USD/TRY had been a volatile currency pair for a handful of years, traders became accustomed to sudden fluctuations. For the time being the USD/TRY is trading like a ‘healthy’ currency pair, but its trajectory upwards remains attractive.
- Speculators who want to participate in the USD/TRY in a conservative manner should use potential reversals higher after technical support levels get challenged. Support near the 27.19500 level in the short term appears to be rather intriguing for cautious traders.
Turkish Lira Short-Term Outlook:
Current Resistance: 27.21625
Current Support: 27.19500
High Target: 27.21890
Low Target: 27.12800
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