USD/TRY has a 5 wave structure!! (More info in description)
From elliot wave analysis, i see that usdtry pair has finished 5 wave structure then started to a-b-c correction.
Also at 5,54 price level i see double top formation and during this time, you can see bearish divergences at macd line and histogram so my first expectation from usd/try is to drop around 5,32 price level.
Then if inclined support is broken, we can test 5,256 price level which is a minimum target for double top formation. After 5,256 price level, usd/try pair can use inclined support as a resistance to test it again or we can observe more drop to 5,137 price level.
***In this trade, your stop loss should be around 5,47
In addition to techical analysis, Donald Trump had a tweet about Turkey on 14 January and he said "Spoke w/ President Erdogan of Turkey to advise where we stand on all matters including our last two weeks of success in fighting the remnants of ISIS, and 20 mile safe zone. Also spoke about economic development between the U.S. & Turkey - great potential to substantially expand!"
Source: twitter.com/realDonaldTrump/status/1084936400212963329
Here is the rules of Elliot waves you can compare with the chart above;
1- Second wave's low is higher than first wave's low.
2- If second wave makes a sharp correction, 4th wave will make a flat correction or vice a versa.
3-If 3rd wave is the longest wave, the time length of the first wave must be equal to the time length of the fourth.
4-After the 5th wave, A-B-C correction comes and this correction will take us to C level which is very close to low of 4th wave.
For more info about double top formation:
forex.cat/images/educacion/english/figura-A-3-1.GIF
I had an analysis about 5th wave failure of usd/try pair in the past which is similiar with this one, it might be useful to check.
Hope to see you in our next trades,
Have a nice day.
Berk
Also at 5,54 price level i see double top formation and during this time, you can see bearish divergences at macd line and histogram so my first expectation from usd/try is to drop around 5,32 price level.
Then if inclined support is broken, we can test 5,256 price level which is a minimum target for double top formation. After 5,256 price level, usd/try pair can use inclined support as a resistance to test it again or we can observe more drop to 5,137 price level.
***In this trade, your stop loss should be around 5,47
In addition to techical analysis, Donald Trump had a tweet about Turkey on 14 January and he said "Spoke w/ President Erdogan of Turkey to advise where we stand on all matters including our last two weeks of success in fighting the remnants of ISIS, and 20 mile safe zone. Also spoke about economic development between the U.S. & Turkey - great potential to substantially expand!"
Source: twitter.com/realDonaldTrump/status/1084936400212963329
Here is the rules of Elliot waves you can compare with the chart above;
1- Second wave's low is higher than first wave's low.
2- If second wave makes a sharp correction, 4th wave will make a flat correction or vice a versa.
3-If 3rd wave is the longest wave, the time length of the first wave must be equal to the time length of the fourth.
4-After the 5th wave, A-B-C correction comes and this correction will take us to C level which is very close to low of 4th wave.
For more info about double top formation:
forex.cat/images/educacion/english/figura-A-3-1.GIF
I had an analysis about 5th wave failure of usd/try pair in the past which is similiar with this one, it might be useful to check.
Hope to see you in our next trades,
Have a nice day.
Berk
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