FxWirePro: USD/TRY rallies to 6-month peak, likely to break above 6.4000
The Turkish Lira declined to a new 6-month low as investors increased their bets on deeper cuts to interest rates to soften the impact of the coronavirus on economic activity. The Central Bank of the Republic of Turkey i…
The Turkish Lira declined to a new 6-month low as investors increased their bets on deeper cuts to interest rates to soften the impact of the coronavirus on economic activity.
The Central Bank of the Republic of Turkey is set to meet on Thursday to consider the level of interest rates, where policymakers are expected to cut rates by at least 50 basis points to 10.25 percent.
USD/TRY is trading 0.9 percent up at 6.3932, having hit a high of 6.939 earlier, its highest since September 2018.
Momentum indicators are bullish - RSI strong at 78, MACD supports upside and Stochs are at overbought levels.
Immediate resistance is located at 6.4154, any close above could take it above 6.4624.
On the downside, support is seen at 6.2569 and break below could take it near 6.2259 (7-EMA).
Recommendation: Good to buy on dips around 6.3345, with stop loss of 6.3150 and target price of 6.4154.
