The common European currency has appreciated substantially against the Turkish Lira during the previous nine months. The pair managed to reach a record high of 4.72 in late November and approached close this area once more last week. The general trend during the previous four weeks has been upwards, as shown by the dashed line.
The Euro remained sticky to this line during for several sessions prior to breaching it earlier today. This factor together with the rate’s inability to pick up speed in the aforementioned long-term channel suggests that the bullish momentum might be gradually allaying. In case the 200-hour SMA near 4.66 is breached, traders should expect a fall down to the 4.60/4.63 area within the following two weeks.
On the other hand, the failure to fulfill this scenario should guide the Euro towards 4.76.