As usual, there are many trading opportunities in any given time only if we practice patience. Today we have a look at the EURTRY, where a potential bear move has been on the formation for quite some times.
Technically from the look at charts, over the past 3-5 months, the monthly chart has been closing with long visible upper wicks, indicating selling pressure after a considerable TRY weakening contributed by political matters and fluctuating oil prices. Turkish Central bank cut interest rates immediately after the Coup and EUR soared to that all time highs of 3.5 but since that time, prices has been slowly coming down.
In the daily chart, the down momentum is so strong and particularly yesterday when prices moved lower breaking a temporary support at 3.38 forming that huge bear candle. I expect prices today to consolidate and move in a range in the lower time frames-that is the 15 min chart, with a move down in the coming days.
Fundamentally, earlier today we saw weak PPI data from Germany coming in lower than expectations and therefore though prices are going up, there will come down later in the London session or even the NY session. You should initiate sell trades depending on if a sell signal has been printed with a confirming bear candle in the 15 min chart.
For now, watch out and trade as follows:
Sell Limit: 3.3730
TP: Trail your profit
Sell Limit: 3.3915
TP: Trail your profits
Have a good trading day