Turkish lira remains under pressure on Tuesday, with negative outlook and fears of significant losses in the near future. Negative sentiment is additionally boosted by concerns about further rise of inflation (report is due on 03 Sep) and decision of Turkish central bank on monetary policy meeting on 13 Sep.
The pair attempts again through significant barrier at 6.2299 (Fibo 38.2% of 7.1043/5.6875 pullback) after Monday’s spike to 6.2975 and failure to close above 6.2299 pivot.
Strong bullish signal could be expected on eventual break here, however, bulls might be delayed as momentum and slow stochastic studies are flat.
This could result in extended consolidation within already established range (6.3430/5.9607) before bulls resume, with inflation report awaited for fresh signals.
Broken 10SMA offers initial support at 6.0470, ahead of range floor at 5.9607 and rising 20SMA at 5.8312, which guards key near-term support at 5.6875.
Res: 6.2299, 6.3430, 6.3975, 6.5650
Sup: 6.1098, 6.0740, 6.0000, 5.9607
