USD/TRY Outlook: USD/TRY Hits New Record High On Fears That The CBRT Would Cut Rates Again Next Week

Technical analysis of Forex market

The USDTRY rose through 9.00 barrier and hit new all-time high on Tuesday.

Lira remains under pressure which increased on fears that Turkish central bank would make another rate cut in the policy meeting, scheduled next week, after the CBRT cut interest rates by 100 basis points to 18% in September.

The central bank’s governor said that the latest rate cut was not a surprise and that the central bank had not neglected its duties by the latest action.

Studies on daily and weekly charts are bullish and favor further advance, while overbought conditions suggest that bulls may take a breather which would provide better levels to re-enter strong bullish market.

Close above 9.00 would generate bullish signal for further advance and unmask psychological 10.00 resistance. Bulls eye next barriers at 9.0760 and 9.1507 (Fibo 161.8% and 176.4% projections of the upleg from 8.2431 (Sep 2 trough).

Former top at 8.9393 (Sep 29) and rising 5DMA (8.9268) mark initial supports, with extended dips not to exceed 8.8145 (Oct 4 trough) to keep bulls intact.

Res: 9.0000, 9.0281, 9.0760, 9.1000.
Sup: 8.9745, 8.9393, 8.9268, 8.8925.