- Turkish lira is looking to extend its two-day winning streak.
- Turkey slapped tariffs on US imports, to get a cash boost from Qatar.
USD/TRY is trading below 6.00 in Asia, having shed more than 15 percent in the last two days.
A technical correction gathered pace on Wednesday after Qatar announced a $15 billion investment in Turkey. Analysts believe the financial aid will likely help Turkey ride out the currency crisis.
That said, Turkey’s escalating tensions with Washington could limit the downside in the USD/TRY pair. Erdogan government hiked tariffs on the US cars, spirits, and rice on Tuesday in response to America’s decision to double the tariffs on Turkish steel and aluminum.
The tit-for-tat tariffs could keep TRY and global markets on the edge.
USD/TRY Technical Levels
Support: 5.80 (10-day moving average), 5.42 (Aug. 6 high), 4.95 (50-day moving average)
Resistance: 6.32 (5-day moving average), 6.579 (previous day’s high), 7.20 (record high)
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