USD/TRY: resistance sits between 5.53/5.64 - Commerzbank

Analysts at Commerzbank, explain that the USD/TRY pair continues to move range-bound above the 2018-19 support line and the 200-day moving average at 5.2200/5.2029.

Key Quotes: 

“USD/TRY continues to oscillate around the 55 day moving average at 5.3615 while remaining above the 2018-19 support line and the 200 day moving average at
5.2200/5.2029.”

“Further support sits at the November low at 5.1331. If a renewed decline were to be seen, the May and mid-July highs at 4.9624/4.9233 would be back in the picture. The currency pair may well stabilise there, though.”

“Resistance sits between the 5.5329/5.6492 mid-October low and November high. If it were to be bettered on a daily chart closing basis, a base formation would be confirmed with the late October and the current January highs at 5.8692/6.0760 then being in focus. While the cross remains below this level, overall sideways to downside pressure should retain the upper hand.”