USD/TRY retreats from all-time peaks near 4.9300

The Turkish Lira remains on the defensive today.
The pair clinched fresh all-time tops near 4.93 earlier in the day.
Try crisis is expected to deepen ahead of June elections.

Pablo Piovano FXStreet

The Turkish Lira remains in free-fall so far this week, pushing USD/TRY to fresh all-time highs just below the 4.93 handle earlier in the session.

USD/TRY remains vulnerable

The selling bias around TRY stays everything but unabated for yet another session on Wednesday, sustaining the up move in the pair to fresh all-time highs above the 4.92 milestone.

TRY remains vulnerable amidst increasing fears of a full-blown currency crisis, while the reluctance of the Turkish central bank to intervene does nothing but fuelling the negative prospects for the currency in the near to medium terms.

It is worth mentioning that TRY has intensified its sell off in response to comments by President Erdogan last week, who said he intends to increase his presence in the domestic monetary policy if he wins the elections next June 24, all against the backdrop of rising inflation and a widening current account deficit.

USD/TRY key levels

At the moment the pair is up 4.39% at 4.8760 facing the next hurdle at today’s all-time high at 4.9282. On the flip side, the next support is located at 4.4920 (10-day sma) followed by 4.3227 (21-day sma) and then 4.2197 (low May 10).

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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