USD/TRY extends four-day winning streak, closes in on 14.00
- USD/TRY keeps pushing higher, as bulls look to recapture the 14.00 barrier.
- The lira tumbles on Turkish Finance Minister’s comments, inflation woes.
- Hawkish Fed outlook supports the pair, with acceptance above 14.00 awaited.
USD/TRY is posting small gains so far this Friday, extending the bullish momentum into the fourth straight trading day.
Bulls look to recover ground above the 14.00 level, in the face of the ongoing descent in the Turkish lira. The beleaguered currency has lost almost 22% in the last nine trading sessions, with the latest decline attributed to the comments from the country’s Finance Minister Nureddin Nebati.
Nebati said that the government would now prioritize the fight against high inflation but added that it had abandoned "orthodox policies" and was charting its own course.
Meanwhile, concerns over Turkey’s soaring inflation also weigh on the lira. Simone Kaslowski, chairman of Turkey's leading TUSIAD business association, said earlier this week that the leap in annual inflation to 36.1% clearly showed the need to reconsider the policy steps Turkey has taken, per Business Recorder.
On the other side, the recent strength in the US dollar and the Treasury yields on the hawkish Fed’s outlook has also helped the upside momentum in the currency pair.
Attention now turns towards the US Nonfarm Payrolls for fresh trading impetus, with a robust report likely to bolster the pair’s upsurge while throwing lira under the bus.
USD/TRY: Technical outlook
Looking at USD/TRY’s technical chart, the pair is yearning to find acceptance above the 14.00 supply zone, having found a strong foothold above the previous resistance of the 21-Daily Moving Average (DMA), now at 13.33.
If the 14.00 mark is regained convincingly, then buyers will look up to the December 21 high of 14.14.
The 14-day Relative Strength Index (RSI) is trading firmer above the midline, allowing more room for the upside.
Meanwhile, a sustained break below the 21-DMA will knock the rates down towards the January 3 low of 12.75.
The next strong support is seen at the bullish 50-DMA of 12.27.
USD/TRY: Daily chart
