Turkish lira fell to new all-time low against dollar on Thursday, following strong sell-off as traders got disappointed by comments from Fed policy maker, which were interpreted as ruling out a Fed swap line to cushion the negative impact from reduced country’s reserves. Lira was the top loser among emerging currencies on Thursday as strong bearish acceleration broke through previous record low from Aug 2018 and hit new historic low at 7.2683. The pair enters again uncharted territory, with strong dollar on safe-haven buying and Turkey’s economy and banking sector being badly hurt from pandemic lockdown, being lira’s key drivers. Some consolidation after break of key barrier and on overbought daily / weekly studies, could be expected, but lira is expected to remain under increased pressure and extend weakness further. Completion of nearly two-year corrective phase from previous high at 7.1074 to 5.1323 (Nov 2018 correction low) is strong signal. Round-figure barrier at 750 and Fibo 123.6% projection at 7.5735 mark next targets, while solid supports at 7.03/6.96 zone are expected to contain dips.
Res: 7.2000; 7.2683; 7.3000; 7.4000
Sup: 7.1074; 7.0320; 7.0000; 6.9590