The Turkish Lira slumped to a fresh 8-1/2 month low as investors cautiously awaited Central Bank of the Republic of Turkey's monetary policy decision. The CBRT slashed its one-week repo auction rate by another 75bps to 1…
The Turkish Lira slumped to a fresh 8-1/2 month low as investors cautiously awaited Central Bank of the Republic of Turkey's monetary policy decision.
The CBRT slashed its one-week repo auction rate by another 75bps to 11.25 percent during its first policy meeting of 2020, defying market expectations of a 50bps cut.
USD/TRY is trading 0.3 percent up at 6.0646, having hit a high of 6.0719 earlier, its highest since May 28.
Momentum indicators are bullish - RSI strong at 73, MACD supports upside and Stochs are at overbought levels.
Immediate resistance is located at 6.0773, any close above could take it above 6.0808.
On the downside, support is seen at 6.0296 (7-EMA) and break below could take it near 6.0241.
Recommendation: Good to buy on dips around 6.0481, with stop loss of 6.0361 and target price of 6.0773.
