USDTRY hits new record high and pressures psychological 7.50 barrier
The USDTRY hit new all-time high at 7.4981 on Wednesday.
Fresh extension of the bull-leg from 28 Aug trough at 7.2860 cracked target at 7.4962 (Fibo 138.2% projection of 7.2683/6.6716) and pressuring strong psychological barrier at 7.50.
Strong dollar and weakening lira’s sentiment on CBRT’s inability to react adequately (high inflation prevents further tightening, while bank’s reserves are also insufficient for more significant action) and curb lira’s fall, are the main drivers of the pair.
Bulls may take a breather before attempting through 7.50 pivot, as daily / weekly studies are strongly overbought (weekly stochastic and RSI diverge from the price action) and traders may not be prepared for the action above 7.50.
Corrective dips should find ground at 7.40/7.37 zone (rising 10/20DMA’s) to keep bulls intact.
Break of 7.50 barrier would spark acceleration towards 7.6370 (Fibo 161.8% projection) with 200% projection (7.8647) expected to come in focus.
Res: 7.5000; 7.6000; 7.6370; 7.7241
Sup: 7.4740; 7.4654; 7.4033; 7.3775