- The Turkish Lira edged higher, retreating from a 3-week low on the back of mixed economic data.
- Turkey's annual inflation rate fell to 9.26 percent in September from 15.01 percent in the previous month, while on a monthly basis, consumer price index increased 0.99 percent in September from 0.86 percent in August.
- Producer Prices rose 2.45 percent year-on-year in September, slowing from a 13.45 percent rise in the previous month, recording It was the lowest producer inflation rate since September 2016.
- However, PPI rose 0.13 perccent m-o-m in September from -0.59 percent in August.
- On Wednesday, the pair retraced from a 3-week peak to close lower at 5.6993.
- USD/TRY is currently trading flat at 5.6981, having hit a high of 5.7576 the day before, its highest since September 12.
- Stochs indicate a bearish crossover
- On hourly charts: RSI is weak at 43.57 and MACD supports downside
- Immediate resistance level is located at 5.7503, any close above could take it till 5.7913.
- On the downside, support is seen at 5.6600/ 5.6484, and break below could take it near 5.6293 (200-DMA).
Recommendation: Good to sell on rallies around 5.6967, with stop loss of 5.7262 and target price of 5.6484.
