- USD/TRY sits at record highs after last week’s CBRT surprise rate cut.
- Price could pull back amid overbought conditions on the daily chart.
- Impending bull cross suggests buying the dips for USD/TRY traders.
USD/TRY finds stiff resistance at $8.90 and recedes from near-record tops, pausing the three-day uptrend this Monday.
The Turkish lira crumbled last week, falling to the lowest levels ever posted on record after the Central Bank of the Republic of Turkey (CBRT) unexpectedly cut its benchmark interest rate by 100 basis points to 18% on Thursday.
Markets view this surprise as negative, as the unexpected rate cut underscores the Turkish central bank’s fragile credibility, which continues to weigh on the lira. However, the risk-on mood-led broad US dollar weakness is seen saving the day for lira optimists for the time being.
At the time of writing, USD/TRY trades almost unchanged on the day at $8.86, having recorded all-time highs at $8.8968 on Friday.
From a near-term technical perspective, USD/TRY appears to take a breather amid overbought conditions showcased by the daily Relative Strength Index (RSI).
However, any dip in the USD/TRY price could be seen as a good buying opportunity, suggested by an impending bull cross, which if materialized could signal buying resurgence.
The 21-Daily Moving Average (DMA) has cut through the 50-DMA for the upside but traders await confirmation on a daily closing basis.
USD/TRY: Daily chart
On the upside, the 9.00 threshold needs to be cleared to head towards the 9.50 psychological level.
Meanwhile, any retracement could see initial demand emerging at Friday’s low of 8.76. The next downside target is seen at around 8.60, the round number.
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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
AUD/USD recovers further toward 0.6800 on risk-recovery
AUD/USD extends recovery toward 0.6800 in Asian trading on Thursday, despite mixed Australian employment data. The Aussie cheers a return of risk appetite, which weighs on the post-Fed US Dollar recovery. All eyes now remain on US economic data for fresh impetus.
USD.JPY reverses sharply from 144.00, as US Dollar recovery fizzles
USD/JPY is attacking 143.00 in Thursday's Asian session, reversing sharply from 144.00. The pair pares back gains in tandem with the US Dollar, as the latter's post-Fed recovery falters due to a rebound in risk sentiment. The focus is next on the US data due later today and Friday's BoJ decision.
Gold defends $2,550 in the Fed’s aftermath, ahead of US data
Gold price is defending $2,550 early Thursday, catching a breath after intense volatility witnessed in the aftermath of the all-important US Federal Reserve monetary policy announcements and Fed Chairman Jerome Powell’s press conference.
Bitcoin surges to $62,000 mark after 50 bps Fed rate cut
Bitcoin and Ripple eye for a rally as they break and find support around their resistance barrier. Meanwhile, Ethereum demonstrates signs of recovery as it approaches a critical resistance level, indicating that an upward rally could be on the horizon if it successfully breaks through.
Australian Unemployment Rate expected to hold steady at 4.2% in August
The Australian Bureau of Statistics will release the monthly employment report at 1:30 GMT on Thursday. The country is expected to have added 25K new positions in August, while the Unemployment Rate is foreseen to remain steady at 4.2%.
Moneta Markets review 2024: All you need to know
VERIFIED In this review, the FXStreet team provides an independent and thorough analysis based on direct testing and real experiences with Moneta Markets – an excellent broker for novice to intermediate forex traders who want to broaden their knowledge base.