The Turkish currency is accelerating its down move on Monday, lifting USDTRY to new all-time peaks beyond the psychological 5.00 milestone. What is next? This 6 August USDTRY Technical Forecast reveals!
6 August, OctaFX – TRY is losing ground for the sixth consecutive session so far on Monday, always against the backdrop of domestic politic/economic effervescence and the generalized buying interest around the buck.
Another bout of TRY weakness came in today after the White House announced it was assessing the country’s duty-free access to the US markets, with nearly $1.7 billion in centre stage.
It is worthy recalling that TRY reacted negatively last week after a Turkish court failed against an appeal to release US pastor Brunson and the subsequent US sanctions against two top Turkish officials.
Brunson is said to have links with rebel parties that attempted the failed coup in 2016.
Turkish central bank cut the FX reserve ratio
Further out, TRY remained apathetic today after the central bank (CBRT) cut the upper limit of foreign currency reserve to 40% from 45%.
In view of Commerzbank’s Senior Analyst Axel Rudolph:
“We will retain our immediately bullish forecast while no unexpected drop below the 4.7358 July 24 low is seen”.
6 August USDTRY Technical Forecast
At the moment the pair is gaining 1.77% at 5.1773 facing the next hurdle at 5.1958 (all time high Aug.6) and then 6.0000 (psychological level).
On the downside, a breach of 4.9492 (10-day sma) would open the door to 4.8717 (21-day sma) and finally 4.7305 (low Jul.23).
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