Turkish lira faces decline despite interest decision

 Turkish lira faces decline despite interest decision

The Violent Decline of Digital Currencies...and the Causes of Another Collapse

• USD/TRY headed lower but settled above the Confluence of Averages support level.
• Turkey's central bank keeps the interest rate at 14% this month, ending a series of interest rate cuts
• The daily RSI remains stable above 50.00 despite the recent drop in the spot rate.

The USD/TRY pair moved back into the red after the Central Bank of Turkey (CBRT) decided to fix the interest rate earlier on Thursday.

The dollar-euro pair is currently trading at levels of 13.436 lira/dollar, an increase of 0.6%, which is a negative move for the lira, and the Turkish lira got some support after news broke. the policy of the Central Bank of Turkey.

Turkey's central bank announced the fixing of its key rate at 14% and the end of a series of rate cuts that sent the local currency into a downward spiral over the past year.

The price shrugged off the rally in the US Dollar as well as Treasury yields after the US 10-Year Treasury Bill (TIPS) auction.

USD/TRY: Technical Analysis Overview

Looking at the USD/TRY chart, the confluence of the 21 and 50 day moving averages (DMA) at 13.05 makes it difficult to break if the daily lows are hit.

If the breakout of the 50-day moving average is confirmed, it will trigger a new bearish move towards the 100-DMA bullish slope towards the 11.00 level.

The January lows at 12.76 may come to the rescue of the bulls until then.

The 14-day Relative Strength Index (RSI) is currently trading flat, at the time of writing, although it remains above its midline, giving buyers optimism.

Bulls need to find a strong position above the 14.00 level to overcome the recent bearish momentum. The December 21 high at 2:14 p.m. will be the next logical target.

Turkish lira faces decline despite interest decision