EUR/TRY 1D Chart: Channel Up

The common European currency is advancing against the Turkish Lira in a long-term ascending channel, which represents a rebound of the currency exchange rate from the bottom edge of a preceding narrow vertical descending channel. Since the pattern has thee reaction lows, two reaction highs and a hollow in the center, it might be broken in the upcoming weeks. In confirmation of this, the rate has bounced off from the 20-day SMA near the 4.0637 mark, which allows drawing a lower support line for a rising wedge. In this context, the pair is expected to reach the upper boundary one more time and then make a new rebound near the weekly R1 at 4.1614. On the other hand, it also possible that it will no manage to bypass the monthly R2 at 4.1399.