USDTRY – Short-lived lira’s rally after CBRT surprise
|USDTRY
Turkish lira spiked to session high at 4.0304 (the highest since 20Apr) against US dollar after CBRT rate announcement today, but gains were so far short-lived, as the pair subsequently bounced above 4.10 barrier. Turkish central bank surprised on stronger than expected late liquidity window rate hike (13.5% vs 13.25% f/c from 12.75%) but kept main interest rates unchanged. Expectations for stronger lira's rally after today's CBRT decision (lira was sold when the CB hiked less than expected in Dec) are fading, as quick recovery pressures key near-term resistances at 4.11 zone (23/24 Apr highs). With the dollar being strongly underpinned by US yields rising to new multi-year highs, little prospect for lira's rally was left. Fresh dollar longs above 4.00 remain favored scenario, which is supported by bullish daily techs and overall negative lira's sentiment. Bulls need firm break above 4.11 lower platform and 4.1209 (Fibo 61.8% of 4.1932/4.0040) to signal an end of corrective phase and shift focus towards new all-time high at 4.1932. Conversely, bearish scenario needs break below 4.00 pivot to signal stronger correction.
Res: 4.1120; 4.1209; 4.1485; 4.1606
Sup: 4.0790; 4.0517; 4.0304; 4.0040
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.