USD/TRY Technical Analysis: Bearish pennant breakdown confirmed

• The USD/TRY closed yesterday at 6.3246, confirming a downside break of the pennant pattern on the daily chart or a bullish-to-bearish trend change. As a result, the spot could soon test support at 5.96 (Aug. 27 low) and could drop further towards the ascending 50-day moving average (MA), currently located at 5.62.
• The pennant breakdown on the USD/TRY could trigger a relief rally in the other EM currencies like INR.

Daily chart

Spot Rate: 6.3457

Daily High: 6.3495

Daily Low: 6.3346

Trend: Bearish

Resistance

R1: 6.4937 (5-day moving average)

R2: 6.8353 (Aug. 30 high)

R3: 7.00 (psychological hurdle)

Support

S1: 5.96 (Aug. 27 low)

S2: 5.68 (Aug. 16 low)

S3: 5.62 (50-day moving average)