EUR/TRY was dominated by bearish momentum following a test of the senior channel near 5.17 on April 11. This movement was constrained in a downward-sloping channel. The pair managed to reduce the trading range within this pattern and breach the combined resistance of the 55–, 100– and 200-hour SMAs and the above channel.
This session marked a strong surge for the EUR/TRY exchange rate which resulted in a test of the 5.00 mark during the day. This up-move has pushed technical indicators in or near the overbought territory. Thus, the following days might mark a bearish reversal. Even more, it is likely that the Euro tries to edge even lower and reach the senior channel located near 4.86/88 before starting a new medium-term surge.