Lira advances further as Turkey’s inflation falls to nearly three-year low
The Turkish lira extends advance against US dollar on Monday, after bulls paused last Thu-Fri for consolidation.
The news released this morning showed further fall in Turkey’s inflation, which dropped to the lowest in almost three years.
Fresh optimism prompted investors back into lira as inflation significantly fell on CBRT measures (dropping from last year’s 15-year high above 25% to the current levels (Oct 2.0% m/m vs 2.02% f/c / y/y 8.55% vs 8.6% f/c and 9.26% prev).
Strong lira’s advance broke through thin daily cloud last week and pressures key obstacle provided by 200DMA (5.6822), violation of which would expose next important barrier at 5.6367 (30 Sep lira’s high).
Daily studies show lira’s strong bullish momentum and MA’s in positive setup that support Turkish currency’s advance.
Broken 100DMA (5.7102) marks initial support, guarding daily cloud base (5.7418) which is expected to hold lira’s corrective dips and keep bulls intact.
Res: 5.7102; 5.7418; 5.7541; 5.7703
Sup: 5.6868; 5.6696; 5.6367; 5.6000