Turkish lira hits new multi-month low; outlook remains negative
The USDTRY extends steep bullish acceleration for the fourth straight day and hits new multi-month high at 6.2445 (the highest since 24 Sep 2018) on Thursday.
Lira remains under strong pressure on internal political / economic issues, while rising risk aversion mode continues to boost dollar.
The pair rides on extended third wave of five-wave cycle from 2019 low at 5.1595, which cracked its FE 138.2% at 6.2377.
Bulls now focus key Fibo barrier at 6.3529 (61.8% retracement of 7.1074/5.1323) violation of which would generate strong bullish signal for extension towards med-term target at 6.50 zone.
Technical studies on larger timeframes are firmly bullish and support scenario, with corrective actions to be seen as positioning for fresh advance.
Rising 5SMA offers initial support at 6.1191, with deeper dips expected to find ground above ascending 10SMA (6.0364).
Res: 6.2445; 6.3000; 6.3529; 6.4000
Sup: 6.2000; 6.1518; 6.1191; 6.0739