• USD/TRY breaks to the downside but holds well above confluence support.
  • CBRT stands pat at 14% this month, ends strings of interest rate cuts
  • Daily RSI still holds above 50.00 despite the latest downtick in the spot.

USD/TRY has returned to the red after the Turkish central bank’s (CBRT) no-rate change decision earlier this Thursday.

The spot is trading close to five-day lows of 13.26, gradually breaking lower, as the Turkish lira drew some support from the CBRT policy announcements.

The Turkish central bank kept the key rate steady at 14%, putting an end to strings of rate cuts, which sent the local currency into a downward spiral over the last year.

The major ignores the rebound in the US dollar alongside the Treasury yields after the US 10-year TIPS auction.

USD/TRY: Technical outlook

Looking at USD/TRY’s technical chart, the confluence of the bullish 21 and 50-Daily Moving Averages (DMA) at 13.05 will be a tough nut to crack should the daily lows give way.

A firm break below the latter will trigger a fresh downswing towards the upward-sloping 100-DMA at 11.00.

January lows of 12.76 could come to the rescue of bulls beforehand.

The 14-day Relative Strength Index (RSI) is trading listlessly, at the time of writing, although remains above the midline, keeping buyers hopeful.

Bulls need to find a strong foothold above the 14.00 threshold to negate the recent bearish momentum. The December 21 high of 14.14 will be the next relevant upside target.

USD/TRY: Daily chart

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.

Feed news Join Telegram

Recommended content


Recommended content

Editors’ Picks

EUR/USD holds above 1.0700 after US inflation data

EUR/USD holds above 1.0700 after US inflation data

EUR/USD stays in the lower half of its daily range but continues to trade above 1.0700 in the early American session on Friday. The data from the US showed that the annual Core PCE Price Index declined to 4.9% in April as expected, making it difficult for the dollar to gather strength.

EUR/USD News

GBP/USD trades above 1.2600 as dollar struggles to find demand

GBP/USD trades above 1.2600 as dollar struggles to find demand

GBP/USD clings to daily gains above 1.2600 and remains on track to end the week in positive territory. The greenback struggles to attract investors after the data from the US showed that PCE inflation softened in April. 

GBP/USD News

Gold pulls away from daily highs, holds above $1,850

Gold pulls away from daily highs, holds above $1,850

Gold has lost its traction in the second half of the day on Friday and declined toward the $1,850 area. The benchmark 10-year US Treasury bond yield staged a modest rebound on the US PCE inflation data, not allowing XAU/USD to preserve its bullish momentum.

Gold News

Terra’s LUNA 2.0 support expands with Binance and Kraken welcoming the airdrop, here’s how you need to prepare

Terra’s LUNA 2.0 support expands with Binance and Kraken welcoming the airdrop, here’s how you need to prepare

Terra’s LUNA fork proposal has passed with 65.5% votes, Revival Plan 2 in action without algorithmic stablecoin UST. LUNA price could wipe out losses incurred by holders in the colossal crash of LUNC and UST. 

Read more

FXStreet Premium users exceed expectations

FXStreet Premium users exceed expectations

Tap into our 20 years Forex trading experience and get ahead of the markets. Maximize our actionable content, be part of our community, and chat with our experts. Join FXStreet Premium today!

BECOME PREMIUM

Forex MAJORS

Cryptocurrencies

Signatures