Extended weakness cracks the upper boundary of key support zone
The USDTRY fell further on Thursday and cracked 200DMA, which marks the upper boundary of key support zone between 5.5893 and 5.5740, consisting of 200DMA and Fibo 61.8% of 5.1595/6.2445 rally.
Lira received fresh support from rise in overseas investments and signals that Turkey government plans to double a tax on buying foreign exchange.
Daily studies maintain strong bearish momentum that adds to negative near-term outlook.
Firm break below 5.5893/5.5740 supports would generate strong bearish signal for extension of downtrend from 6.2445 (2019) towards round-figure 5.50 support, with stronger bearish acceleration to focus next key levels at 5.4156/14 (Fibo 76.4% / weekly cloud base).
Falling daily Tenkan-sen (5.7111) should keep the upside protected.
Res: 5.6242; 5.6610; 5.6993; 5.7111
Sup: 5.5893; 5.5740; 5.5000; 5.4709