FxWirePro: USD/TRY extends bullish momentum to 18-month peak after Erdogan outlines liquidity measures

• The Turkish Lira plunged to a fresh 18-month low after President Recep Tayyip Erdoğan announced the government’s plans to support the economy. 
   
• The government outlined a 100-billion-lira ($15.4 billion) package of measures to help the economy withstand the impact of the coronavirus.
   
• The measures included doubling the size of the country’s Credit Guarantee Fund to 50 billion liras, a 3-month delay on loan repayments for firms suffering liquidity shortages and a 6-month postponement in sales tax and social security payments for key sectors.
   
• USD/TRY is trading 0.9 percent up at 6.5361, having hit a high of 6.5369 earlier, its highest since September 2018. 
   
• Momentum indicators are bullish - RSI strong at 81, MACD supports upside and Stochs are at overbought levels. 
   
• Immediate resistance is located at 6.5490, any close above could take it above 6.5583.
   
• On the downside, support is seen at 6.4405 and break below could take it near 6.4172 (23.6% Fib).
   

Recommendation: Good to buy on dips around 6.4842, with stop loss of 6.4563 and target price of 6.5490.