Turkish lira stands at the back foot ahead of CBRT’s meeting on Thursday
The pair holds in green for the third straight day after last week’s bulls’ stall and subsequent pullback was contained by daily cloud base / 30DMA on Wed/Thu.
Fresh advance comes in mixed technical environment as daily momentum is falling, while stochastic and RSI are rising and MA’s are in mixed setup.
No clear direction could be seen while the pair holds within falling daily cloud (5.6420 /5.8171) with break of either cloud boundary expected to generate fresh direction signal.
Near-term focus turns towards CBRT’s monetary policy meeting on Thursday.
Recent data showed that inflation in Turkey is falling, with signals from President Erdogan for further rate cut after the central bank slashed interest rates by 425 basis points to 19.75% previous month.
Further easing is seen likely, however, the central bank needs to act accordingly as too aggressive cuts may offset positive signals from falling inflation.
Res: 5.7664; 5.7914; 5.8171; 5.8497
Sup: 5.7236; 5.7043; 5.6862; 5.6420