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FxWirePro: Turkish Lira hovers towards 7-week low following downbeat current account balance 

  • The Turkish Lira eased, hovering towards a 7-week low hit in the previous session following downbeat October current account figures.
     
  • Turkey’s current account surplus declined to USD 1.55 billion in October from USD 2.64 billion in the same month of the previous year, below expectations of a USD 1.65 billion surplus and the smallest surplus since July.
     
  • USD/TRY is trading 0.05 percent up at 5.8074, having hit a high of 5.8182 on Tuesday, its highest since October 22. 
     
  • Momentum indicators are bullish - RSI strong at 62.65, MACD supports upside and Stochs are at overbought levels
     
  • Immediate resistance is located at 5.8281, any close above could take it above 5.8343.
     
  • On the downside, support is seen at 5.7900, and break below could take it near 5.7753 (5-DMA).

Recommendation: Good to buy on dips around 5.8097, with stop loss of 5.7900 and target price of 5.8281.

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