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The Turkish lira continues to plummet as the EUR/TRY pair is fast approaching the psychological 10.0000 mark around which it may well lose momentum, according to Commerzbank’s Karen Jones.

Key quotes

“EUR/TRY is heading towards major psychological resistance at 10.0000. Around the latter we would expect to see some loss of upside momentum. Above here we have a Fibonacci extension to 10.10 and TD resistance on the weekly chart at 10.1596.” 

“Immediate upside pressure should be maintained while the currency pair stays above the 9.2024 October 22 low. Above it, the four-month support line can be found at 9.3921 and below it the October low at 8.9589.” 

“Our medium-term bullish view will remain intact while the cross stays above the late September low at 8.7517 on a daily chart closing basis. Below 8.7517 minor support can be found at the 8.7128 September low and also at the August 12 and 21 lows at 8.4909/8.4582.”