The USDTRY pair holds in red for the fourth straight day on Monday and is on track to fully retrace 5.3015/5.5412 correction after bulls were trapped at important 5.50 resistance zone.
Turkish lira maintains firm tone despite last week’s weak jobs and industrial data (unemployment rose to 11.1% in three months to Sep from previous 10.6 result while IP fell 2.7% in Sep).
The pair is expected to continue to channel lower on firm break below 5.30 handle, which would open way towards 5.1246 (Fibo 76.4% of 4.5121/7.1074) and 5.1067 (200SMA).
Improved sentiment and bearish daily/weekly techs maintain lira’s bullish stance, with weaker US dollar on concerns over Dec rate hike, adding to positive near-term outlook for lira.
Res: 5.4078, 5.4918, 5.5412, 5.5849
Sup: 5.3015, 5.2450, 5.2100, 5.1534
