Lira starts to accelerate lower after a quiet period; CBRT’s intervention unlikely to stop fall
Turkish lira weakened in past few sessions, after holding within very narrow range for five weeks.
Fresh strength of USDTRY pair cracked strong barrier at 6.9700 (daily cloud top / 50% retracement of pullback from new record high at 7.2683 to 6.6716) but so far failing to register clear break higher.
Turkey’s central bank intervened in attempts to stop lira from falling that lira’s limited losses for now and keep the pair under significant barriers at 6.9700 and 7.0000, but the impact is likely to be short-lived and won’t stop fresh weakness.
Daily chart shows formation of higher low of recovery from 6.6716 at 6.8154 and rising bullish momentum that works in favor of further advance.
Tuesday’s close above 6.8996 pivot (Fibo 38.2% of 7.2683/6.6716) was initial bullish signal which looks for confirmation on close above 6.9700 that would open way for extension towards psychological 7.0000 barrier and 7.0404 (Fibo 61.8%).
Broken Fibo level at 6.8996 now offers solid support which is required to hold and keep bulls intact.
Res: 6.9700; 7.0000; 7.0404; 7.0716
Sup: 6.9278; 6.8996; 6.8560; 6.8154