FxWirePro: Turkish Lira declines to its weakest levels since August 2018 as virus lockdown extends

• The Turkish Lira plunged to a fresh 1-1/2 year low after President Recep Tayyip Erdoğan announced the expansion of a weekend lockdown.
   
• The Turkish currency eased 0.5 percent, edging closer to a key psychological level at 7 against the U.S. currency. 
   
• USD/TRY is trading 0.5 percent higher at 6.9709, having hit a high of 6.9733 earlier, its highest since August 2018. 
   
• The Central Bank of the Republic of Turkey is expected to cut its benchmark interest rate by 50 basis points to 9.25 percent at a meeting of policymakers on Wednesday.
   
• Last month, the CBRT cut its benchmark one-week repo rate by 100 basis points to 9.75 percent from 10.75 percent in an earlier-than-scheduled meeting of the Monetary Policy Committee. 
   
• Immediate resistance is located at 6.9841, any close above could take it above 6.9901.
   
• On the downside, support is seen at 6.9187 and break below could take it near 6.8893 (23.6% Fib).

Recommendation: Good to buy on dips around 6.9390, with stop loss of 6.9187 and target price of 6.9841.