Erdogan’s win supports TRY

Erdogan seems to be winning the elections in Turkey according to polls, however other parties did not accept the results yet. The win is expected to give Erdogan sweeping new powers as the president of Turkey in the internal political front. On the monetary front it could be the case that he may try to intervene to CBT’s decisions once again. The Turkish lira strengthened against USD, as political uncertainty was removed with the result and could strengthen further on positive headlines.

USD/TRY opened with a negative gap during today’s Asian morning, breaking the 4.6600 support line and testing the 4.6000 support line. The pair also broke the sideways movement it had for the past ten days, reflecting the strengthening of the TRY side. We could see the pair continue to trade in a bearish market as the RSI reading touched 30 and the sideways motion is broken. Should the bears continue to be in charge, we could see the pair breaking the 4.6000 support line and aim for the 4.5275 support barrier. On the other hand should the bulls take over, we could see the pair breaking the 4.6600 resistance line and aim for the 4.7650 resistance hurdle.