USD/TRY Price Analysis: Consolidation below 7.80 ahead of CBRT

• Volatile hours ahead for the Turkish lira on the back of the CBRT meeting.
• USD/TRY holds bearish bias in the short-term.

The USD/TRY is about to post the fourth consecutive daily close around the 7.65/70 area as it continues to consolidate after the sharp correction from record highs.

The current bias point to further losses but the key will likely depend on Thursday’s decision of the Central Bank of the Republic of Turkey (CBRT).

No signs of a bullish correction area seen and key moving averages are turning south suggesting more losses or a consolidation at lower levels. Around 7.85 the immediate resistance is seen, followed by the 8.00 area. A close above 8.05 would point to a test of the 20-day moving average at 8.10.

On the flip side, a firm break under 7.60 would clear the way for a slide toward the next strong support at 7.40. The next support area is located at 7.20

USD/TRY daily chart