The Turkish lira continues to weaken and hit new lowest since Sep 2018 on Tuesday as rising demand for safe-haven greenback offsets the action of Turkish central bank. The CBRT cut interest rates today by 1%, bringing rate to single digit (9.75%) and announced a number of measures to be taken in the near future to keep the liquidity and cushion negative impact from corona virus outbreak. The pair extended steep ascend into seventh straight day and broke above important Fibo barrier at 6.3529 (Fibo 61.8% of pullback from all-time high at 7.1074 to 5.1323). Close above the latter would generate bullish signal for further extension of broader ascend from the higher base formed in Dec 2018/Jan 2019. Bulls eye Fibo barrier at 6.6413, which guards psychological 7.00 level. Corrective dips are expected to find ground above rising daily Tenkan-sen (6.2774) and former high of 2 Mar (6.2590).
Res: 6.5000; 6.5516; 6.6413; 6.7339
Sup: 6.4410; 6.4195; 6.3529; 6.2774
