USD/TRY extends the rangebound trade above 7.8000

USD/TRY keeps daily gains above the 7.80 level.
Attention shifts to November’s inflation figures on Thursday.
Investors remain focused on the CBRT meeting on December 24.

Pablo Piovano FXStreet

The Turkish lira alternates gains with losses vs. the dollar and prompts USD/TRY to navigate within the 7.77-7.85 range so far on Wednesday.

USD/TRY looks to data

USD/TRY clings to its daily gains amidst the ongoing gradual uptrend, all against the backdrop of the persistent cautious stance from investors and rising speculations over a potential move on rates by the Turkish central bank (CBRT) at its December event.

In the meantime, the pair appears to have moved into a consolidative phase following last week’s rejection from the area beyond the key barrier at 8.00 the figure.

Moving forward, inflation figures tracked by the CPI for the month of November are due tomorrow. Earlier in the week, Turkey’s manufacturing PMI eased to 51.9 during last month, but the good news came from the GDP results, showing the economy expanded nearly 7% during the July-September period.

USD/TRY key levels

At the moment the pair is gaining 0.09% at 7.8301 and faces the next resistance at 8.0423 (weekly high Nov.24) followed by 8.5777 (all-time high Nov.6) and finally 9.0000 (psychological hurdle). On the other hand, a drop below 7.5853 (100-day SMA) would expose 7.5119 (monthly low Nov.20) and then 7.3970 (horizontal support line off August’s top).

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

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