USD/TRY Price Analysis: Juggling in a range of 14.80-14.90, volatility contracts
25.03.2022, 04:29

USD/TRY Price Analysis: Juggling in a range of 14.80-14.90, volatility contracts

  • USD/TRY continues to auction in a range of 14.77-14.87 the whole week.
  • Contraction of Bollinger Bands (20,2,-2) signals more consolidation ahead.
  • The major is trading above 200 EMA, which adds to the upside filters.

The USD/TRY continues to oscillate in a 10 pips range amid the absence of any potential trigger that could dictate prices in either direction.

On an hourly scale, USD/TRY is auctioning in a range of 14.77-14.87 the whole week. Bollinger Bands have been contracted, which signifies a consolidation ahead. Usually, a squeeze in volatility is followed by a breakout in the same.

The major has been stabilized above 200-period Exponential Moving Average (EMA), which is trading near 14.75. Auctioning of an asset above the 200 EMA adds to the upside filters.

Meanwhile, the Relative Strength Index (RSI) (14) is juggling in a range of 40.00-60.00, which advocates consolidation going forward until the oscillator breaches the consolidation range decisively.

Should the asset violates March 14 high at 14.90, bulls may attract bids and will send the pair towards March 11 high at 15.06. Breach of the latter will send the asset to its ultimate target of 16 December 2021 average traded price at 15.27.

On the flip side, a slippage below the 200 EMA at 14.75 will activate bears and the asset may drop to March 17 low at 14.58. If the asset fails to find ground near 14.58, it will get exposed to March 15 low at 14.39.

USD/TRY hourly chart

 

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