The Turkish lira remains at the front foot against US dollar, following recent gains on risk appetite, sparked by fresh Covid-19 vaccine hopes and replacement of CBRT governor and Financial Minister.
The USDTRY pair eased nearly 5% on pullback from new record high at 8.5816 (posted last Friday) and cracked psychological 8.00 support today, signaling further easing.
Traders buy lira on hopes that the Turkish Central Bank will make substantial rate hike on 19 Nov policy meeting, after stayed oh hold in October that would further boost the currency.
Key support at 7.8518 (Fibo 38.2% of 6.6716/8.5816, June/Nov rally) is in focus and break here would signal deeper correction of lira’s 2020 43% fall.
Weakening daily and weekly technical studies support the notion.
Res: 8.0000, 8.0374, 8.1310, 8.1992
Sup: 7.9196, 7.8998, 7.8520, 7.8055