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USD/TRY Fails To Break Near-Term Uptrend, Retraces 50% of Monday's Move Lower

TURKEY
  • USD/TRY failed to move below trendline support coming from the lower bound of the ascending triangle pattern drawn on the daily chart, keeping the pattern intact for now.
  • Price action has retraced 50% of the restrictions easing push lower on Monday, going broadly against the trend of dollar weakness.
  • US comments condemning "anti-Semitic comments" from Turkey will be another source of friction for US-Turkey ties, which remain fairly weak in their present form.
  • Focus today shifts to the FOMC minutes this evening as markets continue to grapple with concerns over inflationary pressures and noisy data in the US.
  • USD/TRY still needs to see a consolidated break below 8.3006 to cement the next downleg, otherwise the top of the flat sided triangle patter will likely be retested at 8.47-8.5127.
  • Intraday Sup1: 8.3319, Sup2: 8.3006, Res1: 8.3984, Res2: 8.439
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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