The European common currency has been appreciating against the Turkish Lira for five weeks. This movement has been bounded in a falling wedge.
As apparent on the chart, the exchange rate is trading near the support cluster formed by the 55-, 100–. 200-hour SMAs and the Fibonacci 38.20% retracement in the 6.9843/7.0499 range. It is expected that the pair will breach given support and trade down to the lower wedge line located circa 6.70.
However, if given support cluster holds, a breakout from the pattern could occur and the pair could jump towards the psychological level at 7.3500/7/4000.