The Turkish lira jumped 1.2% against US dollar after Turkey’s central bank surprised by cutting interest rates more than expected in its policy meeting today.

The CBRT reduced interest rate by 325 basis points to 16.5% against expectations for 250 basis points cut.

The pair dipped from pre-decision levels at 5.76 area to 5.66 zone, where converged 55/30DMA’s offered support and cushioned fall.

Fresh weakness comes after 100DMA and daily cloud top (5.7870 & 5.7701 respectively) repeatedly capped upside attempts.

Risk of break below 55DMA and higher base at 5.6480 that would complete failure swing top pattern on daily chart and spark fresh bearish acceleration towards key supports provided by 200DMA (5.6067) and daily cloud

base (5.5865) exists, but overall lira’s sentiment remains weak and suggests that extended dips may not be long-lasting.

Next week’s Fed policy decision may further boost dollar, already inflated by rising risk sentiment  and bring lira back to red territory.


Res: 5.7043; 5.7295; 5.7524; 5.7870
Sup: 5.6579; 5.6480; 5.5865; 5.5626

USDTRY

The information contained in this document was obtained from sources believed to be reliable, but its accuracy or completeness cannot be guaranteed. Any opinions expressed herein are in good faith, but are subject to change without notice. No liability accepted whatsoever for any direct or consequential loss arising from the use of this document.

Analysis feed

Latest Forex Analysis

Editors’ Picks

EUR/USD struggling to hold onto 1.10 as USD gains ground

EUR/USD is trading close to 1.10, as the US dollar gradually advances. Two White House advisers expressed contradicting accounts of US-Sino trade talks, causing confusion. Germany refrained from adding fiscal stimulus.

EUR/USD News

GBP/USD trades around 1.25 as EU pours cold water on Brexit hopes

GBP/USD is trading around 1.25, off the two-month highs of 1.2582 as EU officials cast doubts about the seriousness of the new UK proposals on Brexit. 

GBP/USD News

USD/JPY drops to one-week lows on trade war headlines

The USD/JPY fell during the American session following reports that the Montana Farm Bureau said China's delegation has canceled a planned trip to view US agriculture.

USD/JPY News

Top 3 price prediction Bitcoin, Ripple, Ethereum: Ethereum points to the Moon as Bitcoin takes a break

ETH/USD exceeds $220 and is bidding to lead the market. Bitcoin sets a bear trap and recaptures $10,000. XRP stalls between technical levels and fails to consolidate $0.30.

Read more

Gold climbs further beyond $1500 mark, lacks follow-through

Gold edged higher for the second consecutive session on Friday, albeit remained well within a familiar trading range held over the past two weeks or so.

Gold News

Forex Majors

Cryptocurrencies

Signatures