Turkish lira consolidates after suffering heavy losses on Friday, outlook remains negative
The pair holds in red o Monday and reverses some of strong gains from last Friday, when dollar surged over 6%.
Turkish lira fell sharply and hit eight-month low against the dollar, on biggest one-day losses since Aug.
Renewed strong fears about Turkey sliding in crisis and Turkeys ties with the USA weakening, prompted investors to buy more foreign currencies.
Bounce from 200SMA (5.4645) which marks pivotal support for the pair, reduces chances to return to this level and generate positive signal for lira on break, despite threatening tone from President Erdogan that those who sell lira will face rigorous consequences.
Friday’s strong rally approached key barrier at 5.9036 (Fibo 38.2% of pullback from new all-time high at 7.1074 to 5.1595 correction low of 31 Jan), with sustained break here to spark fresh acceleration higher.
Meantime, bulls are expected to consolidate before eventual attack at 5.9036 Fibo barrier, underpinned by thick daily cloud and 200SMA.
Res: 5.7460; 5.8410; 5.8767; 5.9036
Sup: 5.6192; 5.5691; 5.5181; 5.4645