EUR/TRY: Deeper downside correction on the cards - Natixis

Micaella Feldstein, Research Analyst at Natixis, suggests that the erosion of the 3.8430-3.86 area (weekly parabolic) for EUR/TRY pair is bearish as it undermines the weekly upside parallels and suggests a deeper downside correction.

Key Quotes

“Besides, downside parallels have emerged on the daily chart, underlining our bearish view for the coming days.”

“Against this backdrop, we anticipate a decline to 3.7810 (daily Bollinger lower band) ahead of the support at 3.7250 (weekly Bollinger moving average). We’ll be careful as a break of this last threshold would provide fresh bearish momentum to 3.5960 (Fibonacci extension) and 3.54 (9month moving average). The resistances are at 3.8430-3.86, at 3.9210, at 3.9720 and at 4.03.”