USD/TRY: Move beyond 3.55/3.58 will unfold further extension in up move - SocGen

Research Team at Societe Generale notes that after breaking above one year consolidation and an inverted H&S, USD/TRY has accelerated the up move and briefly pierced SocGen's advocated level of 3.55/3.58 which corresponds with the upper bound of a multiyear channel.

Key Quotes

“Monthly RSI has rebounded from an upward channel support suggesting the up trend to continue.”

“If we drop down to daily chart, the pair   recently retraced towards a steeper channel limit at 3.34/3.30 (currently at 3.39) and formed a bullish engulfing. Currently a pause is under way however with daily indicators closing in on support; the correction is expected to be shortlived. 3.44 will be an immediate support while lows formed earlier this month at 3.34/3.30 will be an important level. Eventually a move beyond 3.55/3.58 will unfold further extension in up move towards next projections at 3.70.”