USDTRY Stops for a Breath en Route to 6
USDTRY gives up 0.54% today at 5.7986 as the bull run from 5.45 recent lows (August 8th) is intact. The pair accelerated the upward move after the price pierced the descending trendline from May 23rd. United States MBA Mortgage Applications came in down to -6.2% on August 23, from previous -0.9%. Earlier today, Turkey Economic confidence index came in at 87.1 for August versus 80.7 previous reading making 12-month highs.
On the technical side, bulls ruling the game the last 20 days. USDTRY will find support at 5.7901 the 100-day moving average while more bids will emerge at 5.6690 the 50-day moving average. On the upside first resistance stands at 5.8248 today’s high, then at 5.85 yesterday’s high, while more offers will emerge at 5.9215 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. USDTRY long positions can sit comfortably as long as the pair trades above the 5.60 zone.