USD/TRY: Consolidation in place - Commerzbank

Karen Jones, analyst at Commerzbank, points out that the USD/TRY has practically reached the November low at 5.1331 before consolidating below the 200- and 55- day moving averages at 5.3105/5.3203.

Key Quotes

“Once the 5.1331 low has been slipped through, the May and mid-July highs at 4.9624/4.9233 will be back in the picture. The currency pair may well stabilise there, though.”

“Resistance still sits between the mid-October low as well as the November 9 and mid-January highs at 5.5329/5.5454. Further up sits the November peak at 5.6492. Only if the November high were to unexpectedly be bettered on a daily chart closing basis, would a base formation be made with the late October and the current January highs at 5.8692/6.0760 then being in focus. While the cross remains below this area, overall downside pressure should retain the upper hand, though.”