FxWirePro: USD/TRY breaks above 21-EMA, jump till 5.7950 likely
The Turkish Lira eased, drifting further away from a 2-1/2 week peak hit earlier in the week, despite better than expected business confidence and capacity utilization. Turkey's manufacturing confidence index rose margin…
The Turkish Lira eased, drifting further away from a 2-1/2 week peak hit earlier in the week, despite better than expected business confidence and capacity utilization.
Turkey's manufacturing confidence index rose marginally to 100.9 in October from 98.8 in the previous month, amid a more favourable assessment of current level of total orders and stocks of finished goods.
Separate data showed capacity utilization in Turkey increased to 76.40 percent in October from 76.30 percent in September.
USD/TRY is currently trading 0.2 percent up at 5.7746, having hit a low of 5.7248 on Wednesday, its lowest since October 7.
Momentum indicators are bullish on hourly charts - RSI strong at 54.85, Stochs are biased higher and MACD support upside.
Immediate resistance level is located at 5.7950 (7-EMA), any close above could take it above 5.8097.
On the downside, support is seen at 5.7519 (55-EMA), and break below could take it near 5.7316.
Recommendation: Good to buy on dips around 5.7678, with stop loss of 5.7519, and target price of 5.7950
