EUR/TRY 4H Chart: Triangle

Five calendar days ago the Euro/Lira cross breached the triangle pattern's lower boundary. Bears have therefore used the opportunity to commence a sell-off of the single European currency. Currently depreciation is capped by the 3.1720 level, which is guarded by the monthly S2 and weekly S1 from below (3.1616/3.1510). Even though a recovery is projected by the long term weekly technical indicators, substantial gains for the Euro seem unlikely. Besides strongly bearish market sentiment (70%), the pair's rally should be contained by the downward-sloping 55-period SMA and the monthly S1 around 3.27. They are followed by the weekly R1 and 100-period SMA at 3.2906/37.