USD/TRY to extend its slump towards 8.07/01 on a break below 8.26 – SocGen

USD/TRY has shaped a head and shoulders pattern which implies further downside. In the view of economists at Société Générale, a move below 8.26 can denote a deeper pullback towards the 200-day moving average at the 8.07/01 region.

Break above is crucial to negate head and shoulders pattern

“USD/TRY has formed a head and shoulders denoting potential downside.”

“A break below 8.26 will confirm a deeper pullback towards 200-DMA at 8.07/8.01.”

“A move beyond 8.74 will be essential to negate the pattern.”