USD/TRY Outlook: Improved sentiment pushes lira higher through important barriers
|USDTRY
Turkish lira advanced to nearly one-month high against US dollar, following Monday’s opening with five-figure gap and extension through 100DMA (5.7090).
Fresh optimism on comments from President Erdogan that there will be no sanctions on Turkey and plans of CBRT to cut FX reserve requirement upper limit, additionally support lira.
USDTRY eventually made clear break below thick daily cloud and also took out 100DMA support, as improved lira’s sentiment turns focus towards 5 June low at 5.6575, violation of which would signal extension of downtrend from 6.2445 (2019 high) and expose key supports at 5.5981 (200DMA) and 5.5740 (Fibo 61.8% of 2019 rally from 5.1595 to 6.2445).
Rising bearish momentum on daily chart and MA’s turning to full bearish configuration, support scenario.
Massive daily cloud produces additional pressure, with broken cloud base (5.7736) marking solid barrier which is expected to keep the upside protected.
Res: 5.7090; 5.7611; 5.7736; 5.7939
Sup: 5.6731; 5.6575; 5.5981; 5.5740
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