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USD/TRY Drifts Higher as Turkey Rallies Islamic Support Against Israel

TURKEY
  • USD/TRY remains pegged above 8.3066 support this morning with buyers keeping the greenback supported in early trading.
  • The cross continues to drift higher within the 8.2046-8.3597 lateral range, looking for catalysts on either side to define a more decisive near-term direction.
  • Yesterday saw Turkey rallying the support of Islamic nations against Israel, which may see the conflict broaden in regional scope over the coming weeks, and should be monitored closely.
  • On the covid front, conditions appear to be easing substantially with restrictions likely to be scaled back over the weekend ahead of the May 17 deadline.
  • Oscillator indicators still suggest the near-term trend remains upwards (RSI 59.85), but will need to clear 8.36 to establish the next leg of the move.
  • Early signs of an ascending flat-sided triangle forming on the daily chart drawn off the 16.
  • April lows, may also signal potential for a continuation higher on a close above 8.36.
  • Intraday Sup1: 8.3066, Sup2: 8.2493, Res1: 8.3319, Res2: 8.3597
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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