USD/TRY should see a deeper pullback while below 6.2248 – Commerzbank

In opinion of Axel Rudolph, Senior Analyst at Commerzbank, the pair is expected to keep the bearish stance as long as it trades below 6.2248.

Key Quotes

“USD/TRY’s fall through the 6.0090/5.9822 late August and mid-September lows has practically taken it to the 55 day moving average at 5.9695 which underpinned last week”.

“Below the current October low at 5.9068 the four month support line at 5.8354 remains to be seen, as well as the mid-August low at 5.6972”.

“A drop below the 5.6972 level would confirm a top and push the August 6 high at 5.4209 to the fore”.

“Further, stronger support, comes in at the May and July highs at 4.9624/4.9233”.

“We will retain our bearish forecast while the currency pair remains below the three month resistance line at 6.2248 and, more importantly, the mid-September high at 6.5521”.