Turkish lira hits new record low on rising geopolitical tensions

The Turkish lira fell to new all-time low vs dollar on Wednesday, on fresh pressure over rising tensions in Caucasus and possible US sanctions on Turkey.
Lira weakened rapidly this year (down 24% so far) as Covid-19 pandemic hit the economy, with central bank actions being limited as Turkey’s forex reserves drained and geopolitical tensions, first with Greece and lately being accused for taking part in Armenia – Azerbaijan conflict, adding pressure on Turkish currency.
Rapid pace of lira’s fall warns of further significant weakness that could turn to disorderly drop.
The USDTRY’s rally cracked today target at 7.8619 (Fibo 138.2% projection of rally from 5.1323), turning focus towards psychological 8.0 barrier, with risk of extension towards 8.3280 (Fibo 161.8% projection) on disorderly acceleration.

Res: 7.9000; 7.9467; 8.0000; 8.0336
Sup: 7.8592; 7.8000; 7.7793; 7.7530