Turkish lira fell sharply against the dollar on Monday’s opening on fresh tensions between the USA and Turkey. The USDTRY pair spiked towards 3.80 zone in thin market in early Asian trading. Strong bullish acceleration on Monday comes in extension of Friday’s rally which signaled continuation of an uptrend from 3.3883 (11 Sep low) which paused for 3.5954/3.5400 consolidation, with several Dojis last week signaling strong indecision and awaiting for fresh direction signal. US jobs data that boosted the greenback were initial signal with fresh political tensions between two countries, sparking further upside. Today’s spike broke well above Fibo 61.8% of pullback from record high at 3.9414 to 3.3883 at 3.7301 and close above the latter would generate another bullish signal. The pair may extend rally to fully retrace 3.9414/3.3883 pullback if tensions intensify. Corrective easing may extend further as daily studies are strongly overextended but overall bullish picture sees dips as buying opportunities. Session low at 3.6500 marks strong support with extended dips to be contained above weekly cloud top/rising 10SMA (3.5835).
Res: 3.7301; 3.7853; 3.8109; 3.8800
Sup: 3.6650; 3.6500; 3.6000; 3.5835
