USDTRY Forms A Triangle as the Correction Continues
Turkish lira continues higher for the fifth consecutive session as USDTRY gives up 0.53% at 5.7090 hitting fresh three week lows. CBRT cut benchmark interest rates by 250 basis points, in its last policy meeting above the analyst’s expectations, to 14%. Turkey’s central bank in its previous meeting also proceeded with a 325bp rate cut to 16.50%. In 2019 the CBRT cut borrowing costs by 7.5 percentage points in an attempt to revive growth.
Later today forex traders await from the US the housing starts and building permits for October, that might add to pairs volatility.
USDTRY outlook is neutral now as the correction from three-month highs continues, testing today the 50-day moving average. The pair has formed a triangle in the daily chart and traders must wait until a convincing break indicate the next trend. Today’s low at 5.7054 will provide support ahead of the macro data which are due from the USA later today. Next level to watch on the downside is the 200-day moving average at 5.7014, a close below that level will probably open the way for a move down to September lows at 5.6420
Resistance for the pair stands at 5.7343 daily top while a break above might drive bulls at the next resistance level at 5.7541 the 50-day moving average which also the upper bound of the triangle in the daily chart.
All in all, USDTRY is close to an explosive breakout and patient traders may wait for the triangle break that will indicate the next massive move.More content