- USD/TRY is better bid on escalating US-Turkey trade tensions.
- The US House of Representatives approved biting sanctions on Turkey's economy.
Turkish Lira is facing selling pressure and USD/TRY is gaining altitude at press time, as the US House of Representatives on Tuesday approved biting sanctions on Turkey's economy.
The bill to sanction Turkish leaders, Halkbank and other financial institutions, and restrict the military’s access to financing and arms is likely to have a significant impact on Turkey’s already fragile economy.
Lawmakers also passed a deeply contentious measure labeling the deaths of roughly 1.5 million Armenians from 1915 to 1923 in the Ottoman Empire (now modern-day Turkey) as a "genocide."
The actions are likely to escalate tensions between the US and Turkey.
Lira, therefore, is likely to remain under pressure and may challenge key resistance at 5.7898 (Oct.25 high). A break above that level would invalidate the bearish lower highs setup on the daily chart.
USD/TRY technical levels
Resistance: 5.7898 (Oct. 25 high), 5.8030 (20-day MA)
Support: 5.7126 (Oct.28 low), 5.6731 (200-day MA).
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