USDTRY – Bullish Trend Confirmed
17th May 2016
…..USDTRY fell 27 big figures from this year’s top with the steady decline highlighted by a corresponding negative trend in RSI.
In fact a move in RSI below it’s moving average line warned of a change in investor sentiment well before confirmation the spot price. This bearish divergence was confirmed by January’s peak being lower than last Septembers.
But the losses this year, although pronouned, showed less momentum than last year’s rise and the more aggressive willingness of investors to buy USDTRY has been shown over the last 2 weeks.
The beginning of this month attracted buying interest with gains of more than 13 big figures – a move that took the spot price aboce the 21 week moving average and back above the weekly Ichimoku Cloud.
That positive signal was confirmed by last week’s move by the RSI indicator through it’s moving average. This, in our assessment, is enough to look for USDTRY demand to extend in the coming weeks with scope to test the previous 3.0610/0754 highs. The reaction to that area or levels near to it will be crucial for sentiment throughout the second half of 2016.
