USD/TRY Outlook: Lira extends weakness after Q1 GDP missed expectations, warning of contraction
|The USDTRY advances for the third straight day after pullback from new record high was contained by rising thick daily cloud.
Recovery broke above initial barriers at 6.80 zone (converged 10/55DMA’s) and 6.8246 (Fibo 23.6% of 7.2683/6.6875), generating initial signal that correction might be over.
Lira was additionally pressured by Turkey’s GDP data which showed slower than expected economic growth in the first quarter (Q1 GDP 4.5% vs 5.4% f/c).
Despite optimism that the economy will pick up during 2020, analysts remain pessimistic and point at grim outlook in the second half of the year.
Technical studies support the recovery with more positive signals seen on weekly chart, where weekly hammer is forming, while bullish momentum is regaining traction and ascending daily cloud continues to underpin.
Fresh bulls need to regain key barriers at 6.9094/6.9180 (Fibo 38.2% of 7.2683/6.6875 / 20DMA) to neutralize existing downside risk and open way for further recovery.
Res: 6.8714; 6.8850; 6.9094; 6.9180
Sup: 6.8246; 6.8000; 6.7886; 6.7460
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.