USDTRY: Bulls Looking for a Break Above Two Week Highs
USDTRY gives up 0.05% today at 5.7591 but continues the rebound from 5.45 recent lows to two-week highs. The pair accelerated the upward move after the price pierced the descending trendline from May 23rd. Yesterday, the United States Initial Jobless Claims came in at 209K, below forecasts of 216K in August 16, the Initial Jobless Claims 4-week average increased to 214.5K in August 16 from previous 213.75K. Turkey Consumer Confidence rose from previous 56.5 to 58.3 in August. Turkey’s jobless rate rose to 12.8 per cent in May 2019 from 9.7 per cent in the same period of the previous year.
On the technical side, the USDTRY will find support at 5.6708 the 50 day moving average while more bids will emerge at 5.5728 the 200 day moving average. On the upside first resistance stands at 5.7840 the 100 day moving average, then at 5.9187, the high from June 14th. The outlook is negative on Turkish lira for the long term due to a fragile domestic environment, and the dovish stance from President Erdogan on interest rates. All in all, USDTRY outlook is bullish, and a move above the 6 mark looks possible.