Turkey on the menu
After reaching a high of 7.10 on August 13, USDTRY has been in a fairly steady downchannel since the beginning of September, falling to under 5.1450. Yesterday it managed a breakout of the expected resistance over 5.23 and is currently trading at 5.3560. Whilst this move was unexpected, we would now expect to see a messy period of consolidation between 5.15 & 5.45, and we’d be looking to trade that range. This is neither a product to get overly aggressive with, nor is it in the right place, but we believe there is value to be had here if you fancy a change from trading the volatility in equity indices. A close below 5.18 today would re-establish the downchannel, but this target reduces slightly as every day passes. A close above 5.53 would suggest a move to test higher has already begun, but watch your daily charts as this will also reduce on a daily basis.