The Turkish lira remains under strong pressure and posted new record low against the dollar at 3.9814 on Wednesday.
Fresh lira’s weakness dragged Turkish stocks significantly lower and consumer confidence fell to yearly lows.
No relief seen for lira in the short term which increases risk of further easing.
Strongly overbought daily / weekly studies are for now ignored and the pair may extend towards psychological 4.00 barrier before entering consolidative phase.
Overall bearish sentiment could push the price above 4.00 for test of 4.0720 (Fibo 123.6% projection of the upleg from 3.3883) in extension.
Rising daily 10SMA continues to track the advance since mid-Sep and marks solid support at 3.8938.
Res: 3.9814, 4.0000, 4.0500, 4.0720
Sup: 3.9511, 3.9414, 3.9131, 3.8938
