FxWirePro: USD/TRY hovers towards 1-1/2 year peak, jump till 6.5048 likely
The Turkish Lira declined, hovering towards a 1-1/2 year low hit in the previous session, sapped by concerns about the coronavirus outbreak. On Tuesday, the Central Bank of the Republic of Turkey cut its key interest rat…
The Turkish Lira declined, hovering towards a 1-1/2 year low hit in the previous session, sapped by concerns about the coronavirus outbreak.
On Tuesday, the Central Bank of the Republic of Turkey cut its key interest rate by 100bps to 9.75 percent in an earlier than expected policy meeting and took steps to support financial markets, in an effort to defend the economy from the coronavirus epidemic.
USD/TRY is trading 1.10 percent up at 6.4672, having hit a high of 6.4940 on Tuesday, its highest since September 2018.
Momentum indicators are bullish - RSI strong at 82, MACD supports upside and Stochs are at overbought levels.
Immediate resistance is located at 6.5048, any close above could take it above 6.5115.
On the downside, support is seen at 6.3350 (5-DMA) and break below could take it near 6.3174 (38.2% Fib).
Recommendation: Good to buy on dips around 6.3990, with stop loss of 6.3751 and target price of 6.5048.
