United States of America won’t make any concessions to Turkey in order for the latter to release US citizen. Trump said that he wasn’t concerned that higher steel and aluminium tariffs imposed on Turkey would have a negative effect on Europe. USD/TRY remained relatively unimpressed on Monday, but further developments could give rise to volatility.
USD/TRY continued to trade in a sideways manner yesterday between the 5.9500 support line and the 6.2800 resistance level. If the pair comes under selling interest we could see it breaking the 5.9500 support line, while should it find fresh buying orders along its path we could see I breaking the 6.2800 resistance level.
US Treasury Secretary said that the USA could impose more sanctions to Turkey, if they not make Brunson to be free.
On the other side, Qatar offered support for about 15 Billion USD for the Turkish economy. Germany stated that it wants to avoid an economic melt-down of Turkey, while France seems to be willing to improve trade relationships. If more negative headlines comes, we could see the TRY weakening once again.
USD/TRY dropped breaking the 5.9500 support line and stabilized below it. We could see the pair continuing to trade in a sideways manner. We could see it breaking the 5.9500 resistance line and aim for the 6.2800 resistance hurdle. On the other side, we could see the pair breaking the 5.6700 support line and aim for the 5.4300 support barrier.
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.