USD/TRY has shaped a head and shoulders pattern which implies further downside. In the view of economists at Société Générale, a move below 8.26 can denote a deeper pullback towards the 200-day moving average at the 8.07/01 region.
Break above is crucial to negate head and shoulders pattern
“USD/TRY has formed a head and shoulders denoting potential downside.”
“A break below 8.26 will confirm a deeper pullback towards 200-DMA at 8.07/8.01.”
“A move beyond 8.74 will be essential to negate the pattern.”
