USD/TRY moved sideways in the last period, but it seems exhausted and could drop again soon. It is trading in the red right now and could slip below a dynamic support, which will signal a potential drop. The pair has managed to increase a little after the last massive sell-off, but it seems that the buyers are not strong enough to push the rate higher and most likely the bears will take the lead again. Right now you should stay away because we still need a confirmation that the rate will drop again.

You can see on the H4 chart that the rate has escaped from the ascending pitchfork’s body and now is pressuring the 50% Fibonacci line of the major descending pitchfork. A failure to stay above the 50% line and to reach the inside sliding line (SL) will send the rate down again.

A valid breakdown below the 50% line will give us a great chance to go short again. The next downside target will be at the median line (ML) of the major descending pitchfork. You should know that a failure to approach and reach the median line (ML) will announce a potential rebound on the H4 chart.

I’ve added also the H1 chart to show you what’s happening on the short term. Price seems very heavy and most likely it will drop further. Support can be found also at the 150% Fibonacci line, so only a valid breakdown below this near-term support will send the rate towards the first warning line (wl1) and towards the median line (ML).

It remains to see what will happen in the upcoming hours because the rate could increase a little again and could try once again to test and retest the SL before will drop.