USDTRY has been up almost 1% today amid the fears that the agreed ceasefire is not holding in Syria. The price currently trades at $5.8257 the bulls aim to test the underside of the descending trend line.
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USDTRY has started the week positively by climbing up to $5.8349 in today’s trading session. Last week, the USD closed 1.66% lower against the Turkish lira after tariffs threatened by Trump’s administration over Turkey’s military offensive in Syria were better than expected for the Turkish Government.
“Minimal sanctions. A few individuals. A trade deal which was years off anyway. And steel tariffs up to 50% — Turkey hardly exports any (steel to the U.S.) anyway,” said Timothy Ash, senior emerging markets strategist at Bluebay Asset Management.
However, the lira is down again today after the weekend’s news suggest that the agreed ceasefire in northern Syria is not being respected.
The bulls are heading for a retest of the underside of the trend line just above the $5.8700 handle. Furthermore, the key 61.8% Fibonacci – connecting May high and August low – comes in at $5.9429 to add to the strong resistance above the current market price.
On the downside, the broken down-slipping trend line and the 100 DMA around $5.7200 are expected to act as strong support to bulls.