- The Turkish Lira eased, drifting further away from a 4-week peak recorded earlier in the week ahead of the Central Bank of the Republic of Turkey's (CBRT) interest rate decision.
- The CBRT slashed its one-week repo auction rate by another 200bps to 12 percent during its December meeting, defying market expectations of a 150bps cut.
- USD/TRY is trading 0.2 percent up at 5.8932, having hit a low of 5.8530 on Monday, its lowest since December 17.
- Momentum indicators are turning bullish - RSI strong at 52.16 and Stochs are biased higher.
- Immediate resistance is located at 5.9052, any close above could take it above 5.9212 (10-DMA).
- On the downside, support is seen at 5.8530 and break below could take it near 5.8404 (55-EMA).
Recommendation: Good to buy on dips around 5.8820, with stop loss of 5.8720 and target price of 5.9052.