FxWirePro: USD/TRY bulls shrug-off twin shooting stars, hits all-time highs with most likely bullish engulfing to clear range bound trend

Despite the formation of back-to-back shooting stars in USDTRY at 3.1124 and 3.1091 levels, bulls edge higher towards all-time highs at 3.1474 levels as bulls resume bouncing above DMAs.

This pair seemed little weaker after hitting all-time highs of 3.1271 levels and dropping since then but managed to hold onto the supports of 3.0928 mark.

But for now, it has taken supports at 3.0516 levels and bouncing above upper range after testing support at 7EMAs with a healthy bullish momentum.

This month, the bulls have managed to break out above the major resistance levels of 3.0660 levels on monthly terms as well.

One can easily make out the bullish effects as and when it approaches the uptrend line. That’s where even RSI evidences the strength in these bullish sentiments.

Slow stochastic curves are almost approach overbought zone but with still %K crossover that signals the healthy momentum in rallies.

The current prices are well above DMAs and EMAs on monthly as well as on EOD graphs that keep us having hopes on current upswings to prevail.

Trade tips:

Stay long conditionally via near month futures as long as 3.0875 holds.

Well, at spot ref: 3.1474 levels, on every dip one can add longs in near futures for targets of 80-100 pips upwards with a strict stop loss at 3.0875 levels.

Alternatively, on speculative grounds, we recommend buying rallies and decide to initiate one touch call options which are highly leveraged products. Since 1W implied volatility is on the higher side at around 9.68% in a slightly bullish environment in short term, we recommend this long vega strategy.