At the beginning of 2014, we saw the EUR/TRY reach to high records above 3.20 level.
Since then, it went down to 2.60 in January 2015.
Closer look at the charts shows us a couple things:
The EUR/TRY pair is struggling to break above the strong resistance zone of 2.89 – 2.90, and previous support level provides a significant resistance to the price action.
If we see some more selling pressure in the EUR/TRY pair, the next key support level will come at 2.86 -88 area and from there it could go to 2.76-8 areas.
This will be key for the pair, with a break below strongly suggesting that there’s been a change of bias in the markets. This would then prompt a move back towards the psychological level of 2.6000. Further falling will then be limited to around the 2.57-62 area.
If we fail to see a break below these hurdles, then I would expect the price to move further up and towards the 2.9050 – 2.9200 resistance zone. From there, if the bulls are strong enough to push the price further up, then I would expect to drive the battle higher and towards the 2.96-7 level.