USDTRY has witnessed a dramatic fall from record highs at the back end of 2020. Sinking to a 6-month low, prices now test the lower $7 region with momentum firmly resting to the downside.
Prices attempted to test the long-term resistance trendline recently, however could not puncture the level which is also a strong confluence of the Ichimoku cloud.
The price test at the cloud’s downside border indicates a descending tendency, which has negated the recent bullish divergence.
We now look towards targets below the $7 psychological level as bears confirm their stance.
An intraday look shows that prices are firmly trading in a descending channel. With prices trading far away from the Ichimoku cloud, further downside is expected.
However, should price once again bounce off the lower channel, it could be a slight indication that in the near-term, the trend could be halted.
The recent bullish divergence could emphasize a turnaround in fortunes for the currency pair, should the Ichimoku indicator’s weigh in.