USD/TRY: A major top could be in place – Commerzbank

In light of the recent price action, USD/TRY could have charted a major top just above 8.58, suggested Commerzbank’s Senior FICC Technical Analyst Axel Rudolph.

Key Quotes

“USD/TRY formed a major top at its recent all-time high at 8.5814 (according to CQG data) before swiftly coming off towards the late September low and the 2020 uptrend line at 7.4945/4618. In this area the cross is likely to short-term stabilise.”

“Further minor support comes in at the 7.4193 August high and also between the 7.2692 May high and the 7.2081 August 21 low.”

“Minor resistance above the 55 day moving average at 7.8267 can be found between the mid-October high and the November 9 low at 7.9593/7.9938 and also along the breached four month uptrend line at 8.0487.”

“Further minor resistance sits at the 8.3313 October 28 high and major resistance at the October and current November highs at 8.5456/5814.”

“We are of the opinion that a major top has been formed.”