USDTRY: Turkish Lira Under Pressure Despite Strong Manufacturing Confidence Data

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.

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USDTRY Resistance and Support

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