USD/TRY guns for the psychological 8.50 mark – Commerzbank

The Turkish lira continues to lose ground and the USD/TRY pair is poised to hit 8.5000 above which beckons 8.8761, Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank, reports.

Key quotes

“USD/TRY has made yet another new all-time high, having overcome the psychological 8.0000 mark and an hourly 0.01 x 3 Point & Figure vertical upside target at 8.1000. The minor psychological 8.5000 mark is thus in the frame, together with a 100% extension at 8.8761. Longs should tighten their take profit stops to just below the recent minor support zone at 8.2689/2589.”

“Upside pressure should remain in play while the cross stays above the four-month support line at 7.8911 and, more importantly, the October 22 low at 7.7808. Below it, the October low can be spotted at 7.6230 and the September 25 low at 7.4945. Minor support below 7.4945 can be seen at the 7.2692 May peak as well as at the August 11 and 21 lows at 7.2081/50.”