Extended Lira’s weakness approaches key s/t supports
The USDTRY advanced further and spiked to new three-week high at 5.8231 on Friday, approaching key short-term barrier at 5.8410 (22 Mar high, posted after daily rally of 6.2%).
Lira remains under strong pressure after Turkish Finance Minister revealed the package of economic measures that failed to regain confidence of Turks, which continue to switch lira to foreign currencies on fears that economic situation could deteriorate.
Turkish FinMin also failed to convince investors in a private meeting in Washington on Thursday.
Near-term outlook for lira remains negative as the latest pair’s rally approached March’s peaks at 5.8410 (22 Mar), 5.8732/67 (weekly cloud top / 1 Mar spike high) and 5.8868 (Fibo 38.2% of 7.1074/5.1323 pullback) which guard psychological 6.00 barrier.
Bullish techs on daily / weekly charts also support scenario, with corrective dips towards 5.65 zone (rising 10SMA) seen as positioning for fresh advance.
Res: 5.8231; 5.8410; 5.8732; 5.8868
Sup: 5.7293; 5.7067; 5.6702; 5.6454