- 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.
