The USDTRY has retreated from the all-time highs of last week at 7.2682 as the government of Turkey prepares to relax its lockdown rules.
Under the relaxed regime, there will be a rotational system which will see various age groups being allowed outside at various times. As children under 14 years and those aged 15-20 years are allowed outside on May 13 and 15 respectively, those who are over 65 years are also being allowed out after several weeks off the streets. The lockdown relaxation was announced as Turkey’s rate of new infections, and the death toll from the coronavirus start to ease.
In response to the measures, the Turkish Lira rose against the US Dollar, enabling it to push the USDTRY away from the all-time highs that were reached last week. The pair currently trades at 7.08515 or 0.27% lower on the day.
There will be no central bank meeting this month, with June 1 being the date of the next meeting of the Central Bank of the Republic of Turkey (CBRT).
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Technical Outlook for USDTRY
The USDTRY is nestling the previous resistance that now functions as a support at the previous all-time high of August 13, 2018. If it succeeds in breaking below this level, the next support level could come in at The next short term support comes in at the 6.99821 price level, where a series of sequential daily highs were formed between 21 – 30 April 2020. 6.92647 provides another level of support (lows of candles of April 21-30), before the tops of 6, 8, 9 and 13 April 2020 give another support at 6.79475.
On the flip side, we have the 7.2000 price area coming in as an initial resistance if there is a bounce from the current support before the all-time highs come in again to form another resistance. Further upsides in price action could follow the pattern of the ascending channel on the daily chart and its interaction with the horizontal support/resistance levels.
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