Gold Silver Reports (GSR) – It’s the third straight day of declines for USD/TRY as further short covering in the lira continues to take place. Sharp spikes tend to produce sharp retracements and this is no exception.
But even so, the lira is yet to pare completely its losses sustained on Friday and Monday trading where the currency weakened from 5.50 to near 7.00 levels at the close on Monday this week against the dollar.
Looking at the near-term chart, price is starting to break below the 200-hour MA (blue line) now and that is indicative of a bias that favours sellers in the near-term.
I still don’t believe things have changed fundamentally but you can’t argue with the charts either. Right now, it is pointing to further weakness in USD/TRY in the near-term and that will be the trade if price stays below the 200-hour MA. – Neal Bhai Reports