EUR/TRY Technische Analyse - EUR/TRY Handel: 2019-08-21

Turkish Central Bank lowers reserve requirements

In this review, we suggest to consider the currency pair Euro against the Turkish Lira. Is the growth of EURTRY quotations possible? Such dynamics is observed with the weakening of the Turkish lira and the strengthening of the euro.

On the daily timeframe EURTRY: D1 exited the downtrend. Further growth of quotations is possible if the crisis in Italy is successfully completed and the monetary policy of the Turkish Central Bank is further relaxed.

• The Parabolic indicator demonstrates a signal to increase.
• The Bolinger bands widened, indicating high volatility. Both Bollinger Lines Slope Up.
• The RSI indicator is above the mark of 50. It has formed a divergence to increase.
• The MACD indicator gives a bullish signal.

The bullish momentum may develop if EURTRY exceeds its last maximum: 6.36. This level can be used as an entry point. The initial stop lose may be placed below the last two lower fractals and the Parabolic signal: 6.11. After opening the pending order, the stop shall be moved following the Bollinger and Parabolic signals to the next fractal minimum. Thus, we are changing the potential profit/loss to the breakeven point. More risk-averse traders may switch to the 4-hour chart after the trade and place a stop loss moving it in the direction of the trade. If the price meets the stop level (6,11) without reaching the order (6,36), we recommend to cancel the order: the market sustains internal changes that were not taken into account.

Technical Analysis Summary