- The Turkish Lira eased, hovering towards an over 5-month low hit last week despite better than expected economic data.
- Turkey's annual inflation rate increased to a 5-month high of 12.15 percent in January from 11.84 percent in the previous month, and above market expectations of 11.86 percent.
- Separate data showed, the Istanbul Chamber of Industry Turkey PMI Manufacturing Index increased to 51.3 in January from 49.5 in December last year, while producer prices rose by 8.84 percent year-on-year in January, accelerating from a 7.36 percent gain in the previous month
- USD/TRY is trading 0.2 percent up at 5.9837, having hit a high of 5.9873 on Thursday, its highest since August 26.
- Momentum indicators are bullish- RSI strong at 68.15, MACD supports upside and Stochs are biased higher.
- Immediate resistance is located at 5.9920, any close above could take it above 6.0030.
- On the downside, support is seen at 5.9559 (5-DMA) and break below could take it near 5.9514 (7-EMA).
Recommendation: Good to buy on dips around 5.9806, with stop loss of 5.9722 and target price of 6.0030.
