USDTRY
USDTRY bounced today after four consecutives days of losses. The pair started a correction from 17-month highs after the Federal Reserve cut interest rates by 50 basis points.
The Purchasing Managers’ Index (PMI) for the manufacturing sector in Turkey posted the strongest reading of the last two years in February. According to the report, the PMI index rose to 52.4. The data indicated the fastest improvement in operating conditions across the manufacturing sector since February 2018. The Employment also grew at the sharpest rate since 2018.
The US Dollar appreciated against the TRY from December 2019 as Turkey’s central bank (CBRT) slashed benchmark rates several times while the sell-off in Turkish Lira accelerated after the CBRT cut rates down to 11.25% on January 16th.
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USDTRY is 0.22% higher at 6.0897 bouncing from two week lows. The technical outlook is bullish for the USDTRY pair as long as the pair is trading above the 6 pscychological mark.
On the upside, the initial resistance for USDTRY stands at 6.1034 the daily top. Next hurdle on the upside for the pair is at 6.1291 the high from yesterday’s trading session. The next supply zone awaits at 6.2191 the high from March 3rd.
On the other hand, the first support for the pair stands at 6.0674 the daily low. If the USDTRY pair breaks below that level the next critical support stands at 6.0433 the low from March 3rd. A break below might test the 50-day moving average at 5.9938.