Lira’s bears on hold ahead of policy meeting but the CBRT cannot do much
The pair is consolidating under new all-time high (7.3989) with lira’s bears taking a breather ahead of CBRT’s policy meeting on Thursday.
The central bank doesn’t have much space for maneuver as their interest rates are already high, in comparison to the rest of the world, where rates hold around zero or in the negative territory and rate hike in attempts to stem lira’s fall is quite unlikely at this point.
Lira may hold in extended consolidation before attacking target at 7.50 as overbought conditions suggest, but strong bullish momentum on weekly and monthly charts warns that bulls remain firmly in play.
Rising 10DMA offers immediate support at 7.3218, followed by 7.2767 (Fibo 23.6% of 6.8810/7.3989), with extended dips expected to find ground above pivotal support at 7.20 zone (Fibo 38.2%) to keep bulls intact.
Res: 7.3989; 7.4091; 7.4500; 7.5000
Sup: 7.3408; 7.3218; 7.3000; 7.2767