USD/TRY defends 50-DMA as bulls eye a sustained move above the psychological 12.00 mark


  • USD/TRY price extends three-day winning streak on Wednesday.  
  • Turkish regulator files criminal complaints over lira’s moves.
  • USD/TRY awaits acceptance above 12.00 after recapturing 50-DMA.

USD/TRY is holding onto Tuesday’s advance while trading just below the 12.00 level, as bulls contemplate the next move amid thin end-of-year liquidity conditions.

The market mood remains mixed amid surging covid cases globally, underpinning the US dollar’s haven demand. Additionally, rising inflation expectations also collaborate with the dollar’s upside, keeping the sentiment buoyed around the spot.

On the TRY-side of the equation, the lira received headwinds from a report carried by the Financial Times (FT), citing that “Turkey’s banking regulator has filed a criminal complaint against more than 20 people, including former central bank governors, journalists and an economist, over alleged attempts to manipulate the country’s exchange rate in a move that could chill criticism of the government’s unorthodox economic policies.”

Meanwhile, the latest Reuters poll revealed that “Turkey's annual inflation rate is expected to have hit 30.6% in December, breaching the 30% level for the first time since 2003 as prices rose due to record lira volatility,” 

Looking at USD/TRY’s technical chart, the spot yielded a daily closing above the 50-Daily Moving Average (DMA) resistance, now at 11.70, having bounced off the critical 100-DMA support in the previous week.

The 14-day Relative Strength Index (RSI) is inching closer towards the midline, still below the midline, threatening the recovery momentum in the spot.

Failure to resist above the 50-DMA could recall sellers for a test of Monday’s low of 11.07, below which the 100-DMA at 10.18 will be back in play.

On the upside, the next relevant resistance is seen at Christmas Eve’s high of 12.19 once the 12.00 mark is taken out convincingly.

Further up, a rally towards the 21-DMA at 13.35 cannot be ruled out.

USD/TRY: Daily chart

 

Share: Feed news

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Recommended content


Recommended content

Editors’ Picks

EUR/USD holds on to intraday gains after upbeat US data

EUR/USD holds on to intraday gains after upbeat US data

EUR/USD remains in positive ground on Friday, as profit-taking hit the US Dollar ahead of the weekend. Still, Powell's hawkish shift and upbeat United States data keeps the Greenback on the bullish path. 

EUR/USD News
GBP/USD pressured near weekly lows

GBP/USD pressured near weekly lows

GBP/USD failed to retain UK data-inspired gains and trades near its weekly low of 1.2629 heading into the weekend. The US Dollar resumes its advance after correcting extreme overbought conditions against major rivals. 

GBP/USD News
Gold stabilizes after bouncing off 100-day moving average

Gold stabilizes after bouncing off 100-day moving average

Gold trades little changed on Friday, holding steady in the $2,560s after making a slight recovery from the two-month lows reached on the previous day. A stronger US Dollar continues to put pressure on Gold since it is mainly priced and traded in the US currency.

Gold News
Bitcoin to 100k or pullback to 78k?

Bitcoin to 100k or pullback to 78k?

Bitcoin and Ethereum showed a modest recovery on Friday following Thursday's downturn, yet momentum indicators suggest continuing the decline as signs of bull exhaustion emerge. Ripple is approaching a key resistance level, with a potential rejection likely leading to a decline ahead.

Read more
Week ahead: Preliminary November PMIs to catch the market’s attention

Week ahead: Preliminary November PMIs to catch the market’s attention

With the dust from the US elections slowly settling down, the week is about to reach its end and we have a look at what next week’s calendar has in store for the markets. On the monetary front, a number of policymakers from various central banks are scheduled to speak.

Read more
Best Forex Brokers with Low Spreads

Best Forex Brokers with Low Spreads

VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.

Read More

Forex MAJORS

Cryptocurrencies

Signatures