USD/TRY: Bears in control, tested 5.7000

• USD/TRY extends corrective slide towards 5.7000.
• Lira accelerates recovery, underpinned by Qatar aide news.

The Turkish Lira extends its recovery-mode into a fifth straight day today, knocking-off the USD/TRY cross to test the 5.7000 level.  

The sellers returned in full swing in the European session, as the traders digested the reports that Qatar pledged $15 billion in investment to Turkey. The Qatar news offered fresh leg to the recovery in the Lira from a record low reached at 7.2393 on Monday.

The recent Lira sell-off was mainly triggered by the US’ imposition of steel tariffs on Turkey. Meanwhile, Turkey retaliated on Wednesday by doubling the tariffs on the US imports of spirits, cars and tobacco.

USD/TRY Technical Levels

FXStreet’s Analyst Omkar Godbole offers key technical levels for trading USD/TRY in the near-term.

“Support: 5.80 (10-day moving average), 5.42 (Aug. 6 high), 4.95 (50-day moving average)

Resistance: 6.32 (5-day moving average), 6.579 (previous day's high), 7.20 (record high).”