The Turkish lira is expected to decline further as ultra-high interest rates have had little significant impact.

USD/TRY – Fresh advance after a shallow correction reclaims the 33 mark and approaches the new record high of 33.13 set on June 25.

The lira remains under strong pressure due to high inflation (over 70%) and a significant trade deficit. Despite the Central Bank of the Republic of Turkey (CBRT) sharply raising borrowing costs in recent months (currently at 50%), the Turkish currency continues to weaken.

Technical studies are firmly bullish across all larger timeframes, with shallow corrections expected to precede fresh rallies as long as the fundamentals remain negative for the lira.

Moves into uncharted territory could target Fibonacci projections at 33.29, 33.38, and 33.54.

Res: 33.00; 33.13; 33.29; 33.38
Sup: 32.85; 32.77; 32.62; 32.46