USD/TRY to extend its race higher on a break above the 18.30 zone – SocGen

The Turkish lira has slipped to a YTD low of 18.30 against the US dollar. Further losses are not ruled out from here, economists at Société Générale report.

17.95/17.75 to cushion downside

“USD/TRY has formed a series of highs peaks and troughs and is now challenging the high formed in 2021 near 18.36. Overcoming this could result in next leg of uptrend towards projections of 18.75 and 19.30/19.70.”

“Short-term support is located at the 50-DMA near 17.95/17.75. This is expected to cushion downside in case a brief pullback materializes.”