Rsi daily divergence + overbough daily.H4,weekly,monthly target 3.6400 Turkish central bank (CBRT) cut the FX RRRS by 50 bp in order to boost liquidity. The central bank has also cut the interbank borrowing limit to TRY22 billion, emphasizing that measures are aimed to tackle the unhealthy price formation.
The Turkish lira vs the euro is about to make a big move in either direction, with Bollinger band starting to squeeze. A big move down would open up a fantastic carry trade opportunity considering the swap. For a similar diea, consider the rand, but with the possibility of gold falling after the referendum, I prefer this trade.
It seems, atleast for midterm that the Lira might be losing some strength, with prices possibly retreating back to 2.90's. This is a possible Long Channel that seems to be forming. If the price confirms this support line on Monday, it is quite possible that 2.90's resistance may be tested by Friday.