Extended consolidation under new all-time high likely to precede push towards 7.50 target
The pair is consolidating under new record high (7.4061) posted on Tuesday, as lira came under increased pressure on tensions between Turkey and Greece over dispute offshore borders.
Larger uptrend remains intact and eyes psychological 7.50 barrier, as lira is pressured by weak economic conditions in Turkey, inability of the central bank to do more to shore the falling currency, with geopolitical tensions adding to increasingly negative tone for lira.
Overbought daily and weekly studies and significant loss of bullish momentum on daily chart may slow the rally for extended consolidation, but not much of lira’s recovery could be expected.
Long tails of daily candles in past few sessions signal that the downside remains well protected.
Only clear break below 7.20 zone would dent bulls and allow for deeper correction.
Res: 7.4061; 7.4125; 7.4500; 7.5000
Sup: 7.3521; 7.3191; 7.3000; 7.2559