Turkish lira falls further on political turmoil
Turkish lira fell further on Tuesday and hit new 2019 low against the dollar, trading at the lowest since early Oct 2018.
Lira was down 3.5% since Monday’s opening, with fresh selling being sparked by decision of Turkey’s election board to re-run elections in Istanbul.
The latest event added to existing negative mode for lira on weakening economy and high inflation that prompted investors to exchange lira for foreign currencies.
The USDTRY’s fresh bullish extension broke above important Fibo barrier at 5.1198 (50% retracement of 7.1074/5.1323) and came ticks ahead of round-figure 6.20 barrier.
Bulls eye target at 6.2286 (4 Oct 2018 lower top) and may extend towards pivotal Fibo barrier at 6.3529 (Fibo 61.8%) as negative sentiment was further soured by decision for repeated elections in Istanbul that would deepen current political turmoil.
Bullish daily/weekly studies support scenario, with brief technical corrections expected to precede fresh advance.
Broken Fibo barrier at 6.1198 now acts as solid support (which requires verification on daily close above), followed by today’s low at 6.0739.
Rising 5SMA (6.0270) and broken psychological 6 barrier are expected to hold extended dips.
Res: 6.2000; 6.2286; 6.3000; 6.3529
Sup: 6.1198; 6.1000; 6.0739; 6.0270