The Turkish lira hit new all-time low against the dollar at 3.9775 on Tuesday, in extension of previous day’s strong rally.
Persisting inflation risks and monetary policy uncertainty, along with Turkey’s strained relations with the United States, keep lira under strong pressure that resulted in lira’s 17% fall since September.
Strong bullish acceleration on Monday which eventually broke above the top of near-term congestion, signaled further upside and full retracement of 3.9414/3.3883 correction and further upside on break.
Fresh bulls need close above former USDTRY’s record high at 3.9414 for confirmation that would open way towards psychological 4.00 barrier in coming sessions.
Former top at 3.9414 now acts as initial support, followed by session low at 3.9161, with deeper dips expected to hold above rising 10SMA (currently at 3.8834).
Res: 3.9775, 4.0000, 4.0500, 4.0720
Sup: 3.9414, 3.9161, 3.8834, 3.8448
