USDTRY hits new record high; eyes significant barrier at 4.50

The USDTRY hit new record high at 4.4623 on Tuesday in extension of steep three-day ascend from 4.22 (10 May trough).
Turkish lira remains in a free fall against strengthening US dollar, driven by US yields which hit the highest in over seven years.
Comments from Turkish President Erdogan put lira under increased pressure as Erdogan said he plans to take greater control of the economy after snap elections in June.
Turkey is going to switch to presidential system after election, which will provide more power to the President, who will be more involved in central bank decisions.
The CBRT is facing strong difficulties in attempts to fight two-digit inflation while President Erdogan is known as low interest rates supporter and the situation could complicate further once presidential system will be enforced.
Today’s acceleration brings psychological 4.50 barrier in focus and sees increased risk of stronger acceleration above here, despite most of market analysts did not consider that lira could fall beyond this level.
The outlook is now changing as violation of 4.50 would trigger a number of stops and could spark stronger bullish acceleration.
Rally today approached target at 4.4691 (Fibo 161.8% projection of the rally from 4.22) and could extend to Fibo 200% projection at 4.5278 on break above 4.50 pivot.

Res: 4.4623; 4.4691; 4.4915; 4.5000
Sup: 4.4328; 4.4104; 4.4000; 4.3741