USD/TRY: Bears to Extend Further after Break of Key Supports

Technical analysis of Forex market

The USDTRY returned to red on Wednesday after bears took a breather on Tuesday, when price bounced from new six-month low (7.0887).

The pair was down nearly 4% since it broke pivotal 200DMA last week, with additional negative signals being generated on break of former low (7.2370) and 50% retracement of 5.8382/8.5816 rally – 2020 advance (7.2100).

Repeated close below broken 7.21 support maintains firm bearish bias for test of psychological 7.00 support and possible extension towards pivotal supports at 6.8990 top of rising weekly cloud) and 6.8862 (Fibo 61.8% of 5.8382/8.5816).

Daily and weekly studies are in bearish setup and support the notion, with additional boost to lira coming from upbeat data from Turkey’s manufacturing sector and signals that the central bank is going to keep tight monetary policy for some time (CBRT hiked its key rate to 17% from 10.25% late 2020).

Res: 7.2099; 7.2370; 7.2643; 7.3126
Sup: 7.1229; 7.0887; 7.0000; 6.8990