Turkish lira is regaining traction on hopes of solution of current political dispute between Turkey and the US over imprisoned US pastor.
The USDTRY pair holds in red for the second straight day and pressures important support at 6.0420 (daily cloud top) which guards another pivotal support at 6.0093 (post rate hike low).
Lira’s sentiment improved after bigger than expected rate hike by CBRT, as well as government’s new economic growth program.
Solution of political issue would further ease pressure on lira, additionally boosted by US sanctions to Turkey and open way for further recovery.
Break below 6.0093 is needed to spark further strength of lira and open next key supports at 5.8097 (daily cloud base) and 5.6875 (16 Aug low of sharp pullback from new historical high of USDTRY pair).
Bearish setup of 10/20/30SMA’s and strengthening bearish momentum support scenario.
Res: 6.1870, 6.2256, 6.2744, 6.3306
Sup: 6.0420, 6.0093, 5.9223, 5.8097
