- USD/TRY rescued by the 21-DMA support as the correction stalls.
- The Turkish lira rebounded after lifting of the lockdown restriction.
- The spot ignores broad USD weakness as technical setup favors bulls.
The Turkish lira rebounded sharply from record lows over the last two trading sessions after the government on Monday lifted a daytime coronavirus lockdown, imposed 2-1/2 weeks ago. Although, night-time and weekend curfews remain in place.
From a near-term technical perspective, the 21-daily moving average (DMA) at $8.2977 has come to the rescue of the bulls after two straight days of decline.
A daily closing below the latter could call for a bearish reversal. Note that the price hasn’t closed below the 21-DMA since April 15.
The next significant support awaits at the April 29 low of $8.1305.
However, with the 14-day Relative Strength Index (RSI) attempting an upturn above the midline, the odds for the resumption of the uptrend are higher.
USD/TRY: Daily chart
Therefore, USD/TRY needs to recapture the $8.40 psychological level for the bulls to regain control.
Further up, the buyers will look to retest the lifetime highs above $8.51.
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.