© Dukascopy Bank SA
Although the first part of February EUR/TRY remained quite flat, in the end the Euro started to outperform the Turkish Lira, eventually leading to formation of the upward-sloping channel.
Given that last Friday the currency pair bounced off the lower edge of the corridor, it is expected to remain on a bullish path at least until the resistance near 3.11 is hit, which is mainly formed by the rising trend-line and the monthly R1 level. It must also be noted that the positive outlook is reinforced by the technical indicators—there is a significant prevalence of 'buy' signals at the moment, especially on the four-hour chart.
© Dukascopy Bank SA