USDTRY Under Selling Presure After CPI Came In Below Expectations

USDTRY gives up 0.90% today at 5.7656 as the bull run from 5.45 recent lows (August 8th) stopped at 5.8480, a zone where the pair rejected three times the last six trading sessions. The pair accelerated the upward move after the price pierced the descending trend line from May 23rd. Earlier today, Turkey Consumer Price Index (month over month) registered at 0.86%, below forecasts of 1.3% in August. The yearly reading for Consumer Price Index (CPI) came in at 15.01 below expectations of 15.51% in August. The yearly reading for the Producer Price Index fell from previous 21.66% to 13.45% for August.

On the technical side, bulls today loosing the control of the pair as the price breached below the 100 day moving average at 5.7947. USDTRY will find support at 5.6705 the 200 day moving average while more bids will emerge at 5.5859 the 50 day moving average. On the upside first resistance stands at 5.8169 today’s high, then at 5.85 previous week high, while more offers will emerge at 5.9215 the high from June 14th. The outlook is neutral now for USDTRY despite Turkey’s fragile domestic environment, and the dovish stance from President Erdogan on interest rates.Don’t miss a beat! Follow us on Telegram and Twitter.

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