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The Turkish Lira could slip back to the 4.4595/4.4467 band following recent all-time highs, suggested Karen Jones, Head of FICC Technical Analysis at Commerzbank.

Key Quotes

“Last week USD/TRY briefly rose above its 4.9233 May high and (according to CQG) made a new all-time high at 4.9624 before consolidating”.

“This week we expect the 4.9233/4.9624 resistance area to cap and for a gradual decline back towards the 4.4595/4.4467 late May and June lows to be seen”.

“Below it lurks the May 9 high at 4.3746″.

“Failure at this level would push the five month support line at 4.3802 to the fore. Further down the April and the May 10 lows can be spotted at 4.2210/4.1930″.

“Above the 4.9233/4.9624 resistance zone lies major psychological resistance at the 5.0000 mark. Around it we expect the recent advance to falter, if it were to be reached at all that is”.