Today I opened a long position on the USDTRY as there is immense potential and price could keep on going for months. There is a lot going on at this chart!
The Turkish Lira was trading in a descending wedge formation for quite a while when it broke out of the wedge in the beginning of this month. Price however was not able to push far enough to establish a proper breakout and fell back to the upper resistance of the wedge where it’s looking for support now.
While doing so the pair is also in the process of printing an inverted head and shoulders pattern. It’s not a real pretty pattern (because I like to trade pretty patterns) but we do have a clear horizontal neckline and they tend to perform the best.
Adding some moving averages to the chart we can see that price is right at the 200sma. It even peeked below the sma but didn’t manage to stay there very long.
Yesterday price closed above the 200sma again with the stoch being in the oversold region.
I will try to get a foothold into this pair because we do know that this pair can stay in a trend for quite a while. Being in a trade at this level places me well in advance before we reach the neckline of the H&S pattern at 3.6228
Let’s see what price does and hope it keeps on going much higher.