EUR/TRY at key level, what are the prospects?

EUR/TRY H4

Our expectations: The pair is in a key area that will be of key importance to the short-term trend. Following the rebound of the main diagonal supported by a horizontal support area, the price has completely erased the efforts of the Turkish central bank to stabilize the TRY depreciation. The price reached a resistance zone formed by a short horizon, diagonal, 38.2% Fibonacci correction of the corrective wave and 50SMA, which remains close. What drives the price of TRY is not so much the central bank of Turkey, but the moods and expectations of investors for the Turkish economy. Rising interest rates will hardly increase confidence in the Turkish economy. Although central bankers opposed Erdogan and raised interest rates by as much as 6.25% to 24%, the confidence of local and foreign investors would return very slowly. Until then, I expect TRY to remain under pressure. As for Tom Demark's indicators, DeMarker (14) is just entering an oversupply zone, and Sequential counts 6 out of 13 possible - the growth is likely to continue and observe a downward channel breakdown, then a downward correction Direction where to look for positioning with long.

Entry with long or short of current levels would be risky, considering the negative background around the Turkish economy (for the short of the pair) and the unfavorable prices at the moment (for purchase).

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