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USD/TRY Back in the Danger Zone Around 8.50 as Sentiment Deteriorates

TURKEY
  • USD/TRY tracks a softer greenback lower at the open, having faced buying pressure throughout yesterday's session,
  • retesting the penultimate resistance point at 8.4851 marginally below the all-time high.
  • The ascending triangle pattern on the daily remains intact, reinforcing the broad uptrend but has been met with firm selling pressure on previous attempts to make a consolidated break above 8.50.
  • Political frictions within the AKP surrounding mafia links, deteriorating international relations, central bank instability and an ailing economy continue to dampen sentiment in TRY assets as EM investors opt for more clear-cut bright spots for allocations.
  • Erdogan's discussions with US execs will be eyed closely today, alongside Greece-Turkey defense discussions running until tomorrow.
  • Focus will be on the 8.50 level in the coming sessions as risks to a sustained move higher in USD/TRY increase.
  • Intraday Sup1: 8.4345, Sup2: 8.3984, Res1: 8.4851, Res2: 8.5139
MNI London Bureau | +44 020-3983-7894 | murray.nichol@marketnews.com
MNI London Bureau | +44 020-3983-7894 | murray.nichol@marketnews.com

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