Pullback is testing key supports
The USDTRY extends pullback from new all-time high into fourth day as traders took profits from the latest rally and actions from local banks to help lira also contributed.
Extended dip cracked key supports at 7.0000 zone (rising 20DMA / psychological) which were targeted by dip-buyers.
Supports hold for now as current action is seen as positioning for continuation of larger bulls.
The notion is supported by unchanged fundamentals which work against lira.
On the other side, daily techs suggest that deeper pullback cannot be ruled out as bullish momentum is rapidly fading.
Clear break of 20DMA would signal extended correction and expose supports at 6.9130 (30DMA) and 6.8639 (lower 20-d Bollinger band).
Ability to hold above 20DMA would keep immediate downside risk on hold, but lift and close above 10DMA (7.0547) and 5DMA (7.0982) will be required to revive bulls.
Res: 7.0547; 7.0982; 7.1074; 7.1644
Sup: 7.0046; 7.0000; 6.9436; 6.9130