USDTRY Under Pressure Testing the 200-day MA
USDTRY gives up 0.52% today at 5.6793 testing the 200-day moving average. Turkish Lira was under selling pressure last week after CBRT delivered a 325 bp interest rate cut to 16.50% more than markets expected. Markets were expecting 300 basis points interest rate cut from 19.75%. The bull run from 5.45 recent lows (August 8th) stopped at 5.85, a zone where the pair rejected three times since August 27th. The pair accelerated the upward move after the price pierced the descending trendline from May 23rd.
On the technical side, USDTRY has trapped between the 100 and 200-day moving average. Turkish Lira will find immediate support 5.6754 the daily low and then at 5.6729 the 200-day moving average; more bids will emerge at 5.6091 the 50-day moving average. On the upside first resistance stands at 5.6923 today’s high, then at 5.7810 the 100-day moving average, while more offers will emerge at 5.85 the high from August 27th.