USD/TRY stays firm, eases from tops near 6.50

The Turkish Lira loses further ground and tests 6.50.
Solid near term contention remains in the 6.00 neighbourhood.
The pair almost fully recovered the post-CBRT dip.

Pablo Piovano FXStreet

The Turkish currency remains on the defensive in the first half of the week and is now lifting USD/TRY to fresh tops in the boundaries of 6.5000.

USD/TRY looks to sentiment

The pair is advancing for the third straight session on Tuesday, extending the bounce off post-CBRT lows in the vicinity of the key support at 6.00 the figure and clinching at the same time new 3-day peaks.

TRY has started the week on a selling note and continues to erode last week’s gains after the Turkish central bank (CBRT) rose the key rate by 625 bp, more than initially estimated.

Recent comments by President Erdogan aiming at the domestic banking system, particularly the Isbank, sparked fresh concerns amongst investors, while Monday’s $5.8 billion Budget deficit has been also weighing on the sentiment around TRY.

USD/TRY key levels

At the moment the pair is up 1.31% at 6.3946 and a breakout of 6.4651 (high Sep.18) would open the door to 6.8350 (high Aug.30) and finally 7.2393 (all time high Aug.13). On the flip side, the next support aligns at 5.9820 (low Sep.14) seconded by 5.6675 (low Aug.16) and then 5.6240 (55-day SMA).

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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