USDTRY is aggressively diving to a fresh one-month low today, below the 38.2% Fibonacci retracement level of the downfall from 7.1135 to 5.1330 around 5.8855. Looking at the technical indicators, the RSI is slipping below the 50 level, suggesting a downward correction in the daily chart, while the MACD is still falling below the trigger line.
Should the pair stretch south and penetrates the 5.8460 support and the 50-day moving average, the April 17 low of 5.7060 could provide immediate support before the pair touches the 23.6% Fibonacci mark of 5.5970, switching the bullish profile to neutral.
On the flipside, if traders buy the pair, the price could rise until the 5.9855 resistance, while steeper increases could also touch the 50.0% Fibonacci of 6.1200. If the buying interest extends, attention could then turn to the seven-month high of 6.2440.
Overall, the recent bearish action turned the weak momentum to a more aggressive one, with the price increasing distance below the shorter-term moving averages, so we could expect further decline in the market.
