USDTRY reverse early losses after stronger than expected US Durable Goods Orders data for February. Durable Goods Orders increased by 1.2%, to $249.4 billion. The figure top the market consensus of 0.8% increase.
The January’s Durable Goods Orders revised up to -0.1% from -0.2%. Taking out transportation, the new orders decreased 0.6%, while excluding defence, the new orders increased 0.1%. In other economic data, the Housing Price Index came in at 0.3% in line with forecasts in January.
USDTRY started a correction from two-year highs amid the monetary easing by the Fed earlier this week. The U.S. fiscal stimulus also helped to ease the USD liquidity fears, and the emerging markets currencies managed to rebound. The central bank of Turkey cut its one-week repo rate by 100 basis points to 9.75% the previous week, in an emergency move two days ahead of the scheduled policy meeting.
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USDTRY Support and Resistance
USDTRY is 0.68% higher at 6.4654, close to daily highs as the pairs two-day correction took the pair outside of the overbought levels. The technical picture is clearly bullish for the USDTRY, and the pullbacks should be considered as a buying opportunity.
On the downside, first support for the pair stands at 6.3825 the daily low. If USDTRY breaks below, the next support level stands at 6.3378 the low from March 16th trading session. A move below might test 6.2503 the low from March 13.
On the other hand, the first resistance for USDTRY stands at 6.4665 the daily top. Next hurdle for the pair is at 6.5389 the high from yesterday’s session. The next resistance awaits at 6.6132 the high from March 23.
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