If nothing extraordinary affects the rate, it is expected to remain within the boundaries of the junior channel until the upward-sloping trend-line located circa 3.75 is reached within the following two weeks.
In the short-term, however, the Greenback is likely to appreciate against the Lira, as suggested by oversold technical indicators. The pair could reverse from the weekly S1 at 3.7625 and move towards the 55-, 100– and 200-hour SMAs located in the 3.7933/3.8035 area. Subsequently, a move towards the aforementioned trend-line should follow.
In case the sentiment overwhelms the market, thus resulting in an upside breakout of the junior channel, gains could be capped at the 2018 high of 3.8363.
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