USDTRY ON 6.86, EYES ON 20-DAY MOVING AVERAGE
After an increase in the number of cases related to the outbreak, the global markets were in a somewhat mixed course. It is seen that the incentive programs provided specifically for economies lead to some recovery in the risk appetite in the markets. On the other hand, the increasing political tension between the USA and China appears to be among the factors that weaken the risk appetite. In particular, US President Donald Trump stated that the US and China relations were seriously damaged due to the epidemic on the last trading day of the week and that they did not consider the second phase trade agreement with this country had a great impact in the markets.
After some positive results from the vaccination studies accelerated in terms of coronavirus, it is seen that the indexes started a positive start to the week. Following this development, the fact that the dollar, which had a weak week, continued its pricing below the critical 97.0 thresholds, causing the USD/TRY to continue its pricing around the 6.86 threshold.
On the US side, White House advisor Kudlow announced that the US economy is in a recovery movement and that US President Trump will not tolerate a full economic closure in the US due to the outbreak. In the USA, the June PPI figure was realized as shrinkage of 0.2 percent.
After all these developments, in the USDTRY where prices have been squeezed for a long time, the resistance band of 6,86-6,87 has not been permanently exceeded. It can be expected that the exchange rate will accelerate to 7.00 levels by passing these levels. Thus, we can see that attacks against the 7.22 level, which is the main resistance point of the exchange rate, have become frequent. However, we follow the withdrawals within the framework of the 6.75 support for the returns that may come from the $ 6.86 level.