USD/TRY firmer, bounces off the 7.8000 area

USD/TRY adds to Monday’s gains and approaches 8.00.
Weekly support emerges in the 7.74 region (Monday).
Turkey’s Manufacturing PMI eased to 51.40 in November.

Pablo Piovano FXStreet

The lira starts the week on the defensive and lifts USD/TRY back to the 7.90 region on Tuesday.

USD/TRY approaches the 8.00 mark

USD/TRY adds to the optimism seen on Monday and climbs as high as the 7.91 area on Tuesday in spite of the broad-based selling pressure surrounding the greenback.

Indeed, the pair seems to have resumed the upside as market participants continue to sell the lira in light of the strong gains recorded in November. In the meantime, and while investors continue to closely follow any developments from the Turkish central bank (CBRT), the geopolitical front – this time between Turkey and the EU – could bring in some bouts of volatility and weigh on TRY.

Earlier in the session, Turkey’s manufacturing PMI ticked lower to 51.9 for the month of November (from 53.9), while investors are expected to shift the attention to the release of November’s inflation figures on Thursday.

In the US docket, Powell’s testimony before the Senate will take centre stage later in the NA session seconded by the always-relevant ISM Manufacturing.

USD/TRY key levels

At the moment the pair is gaining 0.64% at 7.8540 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 7.5757 (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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