- Following Thursday’s big rate hike from CBRT, USD / TRY has broken below 7.60 and continued to push lower.
- Significant support areas were located just before 7.50, 7.40 and between 7.20-30.
The USD/TRY has posted an impressive drop today of over 1,500 pips (or roughly 2%), with the strength of TRY inspired by a big rally in CBRT. Having broken below last week’s lows at 7.60 in recent trading, the pair is currently at 7.50 and is considering a test of significant support levels to the downside.
USD / TRY looks heavy above key support levels
More immediately, the September 9 high and September 25 lows settled between 7.50 and 7.51, an area that the pair has already tested once, but recovered from, on Thursday. Below them, other key support levels in the form of August 18, 25 and 26 highs and September 10 lows are just above the 7.40 level. Beyond that, the lows of May 7 and 12, 19 and 20 between 7.10-7.20 come into play.
Probably the most important level of support that the USD / TRY could face in the coming months is an ascending trend line that has been in play since the depreciation of the TRY really started to accelerate in 2018 (see the monthly chart below) .
Daily chart
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