- The Turkish Lira declined, extending previous session losses on mixed economic data.
- Turkey's annual inflation rate increased to 10.56 percent in November from 8.55 percent in the previous month, but slightly below expectations of 11 percent.
- Separate data showed the country's producer price index declined 0.08 percent in November after rising 0.17 percent in October. However, on an annualized basis, producer prices increased by 4.26 percent in November, after posting a 1.7 percent gain in the previous month.
- USD/TRY is trading 0.1 percent up at 5.7471, having hit a low of 5.7347 on Monday, its lowest since November 25.
- The pair found strong support at 10-DMA and is currently trading above the 5.7400 level.
- Momentum indicators are bullish - RSI strong at 50.59, MACD supports upside and Stochs indicate a bullish crossover.
- Immediate resistance level is located at 5.7621, any close above could take it above 5.7701.
- On the downside, support is seen at 5.7302 (10-DMA), and break below could take it near 5.7235.
Recommendation: Good to buy on dips around 5.7420, with stop loss of 5.7298, and target price of 5.7621.
