EUR/TRY 1H Chart: Channel Down

More than 250 hours ago EUR/TRY failed to sustain the rally, topping out at 2.5884. Since then the currency pair has been posting lower peaks and lower valleys, creating the bearish channel.

It is noteworthy that the 200-hour SMA had a major influence on the price throughout the formation of the pattern and is expected to remain topical in the future. Meanwhile, it is highly likely the Euro will start depreciating from the current levels, being that it has just completed the upward correction and should now move in the direction of the major trend, namely south. However, it may take some time for EUR/TRY to fully erode the 200-hour SMA at 2.5653.