31 August USDTRY Technical Outlook: The bulls are back in town


Lira (TRY) took a beating on Thursday on reports that the Turkish central bank’s deputy governor and Monetary Policy Committee member Erkan Kilimci is set to resign. How is the pair currently moving? Gain insight into this 31 August USDTRY Technical Outlook.

31 August, OctaFX – Experts downplay contagion fears, but EM currencies are feeling the heat. Indian Rupee (INR) hit record low yesterday and Argentina’s peso dropped 10 percent, forcing the central bank to raise rates to 60 percent.

31 August USDTRY Technical Outlook

The USDTRY looks set re-test the record highs above $7.00, having ended last week’s consolidation with a bull breakout.

The drop in the lira has revived interest in the TRY puts (bearish bets). The USDTRY one-month 25 delta risk reversals hit a two-week high of 9.90 yesterday.

Hourly chart

Spot Rate: 6.75

Daily High: 6.7839

Daily Low: 6.6231

Trend: Bullish

Resistance

R1: 6.7847 (78.6% Fib R of the recent pullback from record highs)

R2: 6.9536 (Aug. 14 high)

R3: 7.0831 (record highs)

Support

S1: 6.6231 (session low)

S2: 6.4422 (5-day moving average)

S3: 6.2490 (10-day moving average)

Disclaimer

This article about 31 August USDTRY Technical Outlook was provided by OctaFX. It should substitute for professional marketing consulting. Forex margin trading involves substantial risks. Forex margin trading exposes participants to risks including, but not limited to, changes in political conditions, economic factors, and other factors. All of which may substantially affect the price or availability of one or more foreign currencies.

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