FxWirePro: USD/TRY eases to 4-week trough, intraday bias bearish
The Turkish Lira rallied to a 4-week peak following upbeat auto production data. Turkey's auto production rose at an annualized rate of 10.3 percent in December from 5.5 percent in November. However, the upside in the Tu…
The Turkish Lira rallied to a 4-week peak following upbeat auto production data.
Turkey's auto production rose at an annualized rate of 10.3 percent in December from 5.5 percent in November.
However, the upside in the Turkish currency appears limited as current account posted a USD 0.52 billion deficit in November, worse than market expectations of a USD 0.42 billion gap.
USD/TRY is trading 0.3 percent down at 5.8562, having hit a low of 5.8530 earlier, its lowest since December 17.
Momentum indicators are bearish - RSI weak at 43.94, MACD supports downside and Stochs are at oversold levels.
Immediate resistance is located at 5.8991 (21-EMA), any close above could take it above 5.9132 (7-EMA).
On the downside, support is seen at 5.8380 (55-EMA) and break below could take it near 5.8230.
Recommendation: Good to sell on rallies around 5.8720, with stop loss of 5.8991 and target price of 5.8380.
