FxWirePro: USD/TRY rallies to 1-1/2 year peak as CBRT slashes rates, likely to break above 6.5000
The Turkish Lira plunged to a fresh 1-1/2 year low following the central bank's emergency meeting. The Central Bank of the Republic of Turkey lowered its one-week repo auction rate by 100bps to 9.75 percent, two days ahe…
The Turkish Lira plunged to a fresh 1-1/2 year low following the central bank's emergency meeting.
The Central Bank of the Republic of Turkey lowered its one-week repo auction rate by 100bps to 9.75 percent, two days ahead of a scheduled meeting, with policymakers raising concerns about the coronavirus outbreak.
USD/TRY is trading 1.01 percent up at 6.4887, having hit a high of 6.4895 earlier, 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 6.5396.
On the downside, support is seen at 6.3806 (23.6% Fib) and break below could take it near 6.3231 (38.2% Fib).
Recommendation: Good to buy on dips around 6.4291, with stop loss of 6.3997 and target price of 6.5048.
