- 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.
Recommended content
Editors’ Picks
EUR/USD holds gains near 1.0650 amid risk reset
EUR/USD is holding onto its recovery mode near 1.0650 in European trading on Friday. A recovery in risk sentiment is helping the pair, as the safe-haven US Dollar pares gains. Earlier today, reports of an Israeli strike inside Iran spooked markets.
GBP/USD recovers toward 1.2450 after UK Retail Sales data
GBP/USD is rebounding toward 1.2450 in early Europe on Friday, having tested 1.2400 after the UK Retail Sales volumes stagnated again in March, The pair recovers in tandem with risk sentiment, as traders take account of the likely Israel's missile strikes on Iran.
Gold price defends gains below $2,400 as geopolitical risks linger
Gold price is trading below $2,400 in European trading on Friday, holding its retreat from a fresh five-day high of $2,418. Despite the pullback, Gold price remains on track to book the fifth weekly gain in a row, supported by lingering Middle East geopolitical risks.
Bitcoin Weekly Forecast: BTC post-halving rally could be partially priced in Premium
Bitcoin price shows no signs of directional bias while it holds above $60,000. The fourth BTC halving is partially priced in, according to Deutsche Bank’s research.
Geopolitics once again take centre stage, as UK Retail Sales wither
Nearly a week to the day when Iran sent drones and missiles into Israel, Israel has retaliated and sent a missile into Iran. The initial reports caused a large uptick in the oil price.