- The Turkish Lira retreated from a near 1-week low hit earlier in the session as the dust settled on soft inflation data released yesterday.
- Turkey's annual inflation rate declined to 8.55 percent in October from 9.26 percent in the previous month, its lowest rate since December 2016
- However, on a monthly basis, the Consumer Price Index increased 2 percent in October over the previous month.
- On Monday, the pair tumbled to 1-month low but found strong support at 200-DMA.
- USD/TRY is currently trading 0.1 percent down at 5.7270, having hit a low of 5.6852 on Monday, its lowest since October 4.
- Momentum indicators are bearish - RSI weak at 46.39, Stochs are at oversold levels and MACD support downside.
- Immediate resistance level is located at 5.7456 (55-EMA)/ 5.7570 (21-DMA), any close above could take it above 5.7701.
- On the downside, support is seen at 5.7126, and break below could take it near 5.6946.
Recommendation: Good to sell on rallies around 5.7306, with stop loss of 5.7456, and target price of 5.6946.
