Bulls hover around 7.00 barrier and ready for eventual break higher
The pair is trading near magnetic 7.00 barrier which so far resists attacks but maintains firm tone and shows signs that eventual break would occur soon.
Shallow pullback after initial test of 7.00 level last week, signaled that bulls ignore the action of state-controlled banks in attempts to slow lira’s fall by heavy selling of the pair.
Extended consolidation cannot be ruled out before eventual break of 7.00 barrier and attack at all-time high at 7.1074 (posted in Aug 2018), with lira likely to fall further due to recession that Turkey’s economy entered and mainly inflated by coronavirus lockdown.
Res: 7.0063; 7.0384; 7.1074; 7.1224
Sup: 6.9788; 6.9558; 6.9222; 6.9000