The Turkish lira is under selling pressure for third consecutive session despite Turkey’s Manufacturing Confidence rose to 102 from previous 100.9 in November while the Capacity Utilization increased to 77.2% in November from previous reading of 76.4%.
USDTRY adds 0.45% at 5.7384 as the pair rebounds from four-week lows. The central bank of Turkey cut interest rates by 250 basis points, in its last policy meeting to 14%. In 2019 the central bank of Turkey cut interest rates by 7.5 percentage points in an attempt to revive Turkey’s growth.
USDTRY managed to break above the 100-day moving average as the pair trades close to daily highs and the bulls attempt to seize control after the pair hit four week low the previous week. USDTRY formed a triangle in the daily chart and traders must wait until a convincing break indicate the next trend. On the upside first resistance for USDTRY stands at 5.7387 the daily high, followed by the resistance at 5.7527 the 50-day moving average. The monthly high at 5.79 will be the next hurdle.
On the flip side, today’s low at 5.7029 is the first support for the pair, while a break below will open the way for 5.6853 the monthly low. Next level to watch is the September lows at 5.6420.More content