USD/TRY - Good levels for Long positioning after corrective wave

Rising interest rates in Turkey will not, by itself, increase confidence in the Turkish economy. Although Erdogan gave way to economists and the central bank raised interest rates by as much as 6.25% to 24%, the confidence of local and foreign investors would return very slowly.

Given this, the interest rate increase is welcome for USD/TRY bulls.

Technical View USD/TRY - H4

After raising interest rates to record levels, the pair's price move reached key levels of support, which at present seems to hold up, despite the support from the central bank. The price is in the support zone formed by the 200SMA, a major horizontal formed from the previous bottoms and near 50% Fibonacci correction of a large initial wave in the upward direction. 50 and 200SMA remain beached - the trend remains in place. DeMarker points up after testing the over-sales zone - a likely turnaround. Sequential counts 3 out of 13 possible top ups - the new upward pulse is still at an early stage giving good levels for long positioning. Price Action - Pin bar in the second test area of ​​the support zone that was activated during the last 4 hours - a positive signal showing the dominance of the bulls.

SL: 5.89495

Alternative scenario: If the price went below the support area and stayed there, the positive scenario would be spoiled and more likely to see a decrease in the pair's price.

Read more:

• AUDUSD: key levels where we are looking for short positions
• AUDUSD bounces off the resistance zone despite the positivism during the Asian hours
• EURUSD in a tight range during the Asian session
• EUR in a recovery mode, but vulnerable | Technical levels
• EURUSD continues ranging in the early EU session. NFP data in focus at 15:30