USDTRY - Correction from new record high shows signs of basing as weak Turkish unemployment data weigh on lira
|The pair started to gain traction on Monday and bounced to 4.1175 after pullback from new record high at 4.1932 (11 Apr) found footstep at 4.0720, just above rising 10SMA, which currently lies at 4.0693.
Overall bullish structure is weighed by overbought weekly techs, but recent pullback looks like shallow correction and positioning ahead of fresh upside.
Lira remains under strong pressure from two-digit inflation and rising unemployment (today’s report showed unemployment rose to 10.8% in Jan vs 10.4% previous month).
All eyes on CBRT policy meeting on Apr 25, as central bank’s further hesitation to increase interest rates or follows President Erdogan’s suggestions to lower rates in order to boost the economy could put lira under fresh pressure.
Last week’s acceleration approached psychological 4.20 barrier and keeps in focus next target at 4.2474 (Fibo 200% projection of the upleg from 3.7153).
Rising 10SMA is expected to ideally keep the downside protected, however, stronger movements on lower liquidity are not ruled out and could result in deeper pullback.
Ascending 20 SMA marks next solid support at 4.0200, guarding psychological 4.00 support.
Res: 4.1175; 4.1458; 4.1606; 4.1932
Sup: 4.0720; 4.0693; 4.0360; 4.0200
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.