USD/TRY Technical Analysis: Looking bearish, testing 8.0000

• The Turkish lira remains near record low levels versus the US dollar.
• The bullish momentum eased further in USD/TRY, correction likely to continue.

The USD/TRY jumped last week to all-time-highs above 8.5000, and it opened the current week with a bearish gap after news from Turkey. It dropped corrected further, finding support at the 8.00 area.

On Tuesday, USD/TRY peaked at 8.3800, but it was unable to hold above 8.30 and pulled back. In the short-term, while below 8.3000 (horizontal support and 21-SMA in 4-hours chart), the bias will point to the downside. The key support stands at 8.0000 and a break lower would clear the way for an extension of the correction, with an immediate target at 7.9000 followed by 7.8500.

On the upside, if USD/TRY breaks and remain above 8.3000, the bullish pressure will increase, exposing the next resistance at 8.4000 that protects the record highs.

USD/TRY 4-hour chart