- USD/TRY seesaws in a narrow range after four-day downtrend.
- Sustained break of key support lines, 100-DMA keeps sellers hopeful.
- Bulls need a clear break of $8.4550 for fresh entry.
- Turkish CPI for July may extend corrective pullback.
USD/TRY treads water around $8.3563 amid early Tuesday. The Turkish lira (TRY) pair dropped to the lowest since June 14 after breaking ascending trend lines from late April and mid-February, as well as 100-DMA, the previous day.
However, oversold RSI conditions seem to probe the pair sellers around multi-day low, not to forget the pre-data caution. That said, Turkey is slated to release July month’s Consumer Price Index (CPI) at 07:00 GMT on Tuesday. Market consensus favors softer prints of 1.54% on MoM versus firmer yearly figures of 18.5%.
Even if the data trigger the corrective pullback towards challenging the immediate hurdle, namely 100-DMA level of $8.3825, USD/TRY bulls remain unconvinced till the quote stays below a convergence of the previous support lines near $8.4550.
Following that, a descending resistance line from late June, near $8.5860, will be important to watch.
Meanwhile, sustained weakness could direct USD/TRY prices to June’s low of $8.2775 before the late April’s swing low near $8.1300 gain the market’s attention.
Overall, USD/TRY remains bearish ahead of the Turkish CPI data but RSI conditions may help the countertrend traders if economics weaken the TRY.
USD/TRY: Daily chart
Trend: Bearish
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
EUR/USD extends gains above 1.0700, focus on key US data
EUR/USD meets fresh demand and rises toward 1.0750 in the European session on Thursday. Renewed US Dollar weakness offsets the risk-off market environment, supporting the pair ahead of the key US GDP and PCE inflation data.
GBP/USD extends recovery above 1.2500, awaits US GDP data
GBP/USD is catching a fresh bid wave, rising above 1.2500 in European trading on Thursday. The US Dollar resumes its corrective downside, as traders resort to repositioning ahead of the high-impact US advance GDP data for the first quarter.
Gold price edges higher amid weaker USD and softer risk tone, focus remains on US GDP
Gold price (XAU/USD) attracts some dip-buying in the vicinity of the $2,300 mark on Thursday and for now, seems to have snapped a three-day losing streak, though the upside potential seems limited.
Injective price weakness persists despite over 5.9 million INJ tokens burned
Injective price is trading with a bearish bias, stuck in the lower section of the market range. The bearish outlook abounds despite the network's deflationary efforts to pump the price.
US Q1 GDP Preview: Economic growth set to remain firm in, albeit easing from Q4
The United States Gross Domestic Product (GDP) is seen expanding at an annualized rate of 2.5% in Q1. The current resilience of the US economy bolsters the case for a soft landing.