FEBRUARY 2017 Forecasts EUR/TRY Parity

After the interest rate decision of Turkish Central Bank, we could observe that the parity tested over the 4.00 level which was the psychological level for the parity. The strong increasing trend was one of the unexpected results of this decision in the global forex market. For the Turkish side, there are some contraversial issues about financial and administrative issues. The meetings of constitutional amendment package in Grand National Assembly of Turkey and some regional conflicts are affecting the prices of EUR/TRY parity.

Technically, the EUR/TRY parity continues to move within the rising channel and is followed by the channel's upper limit, the 4.1250 critical resistance. The parity continues to stay close to the upper edge of the main rising channel as seen in the graphic. Parity has a breaking the upper limit of 4,1250 resistance will be important as it will mean that the bullish trend will get harder. In retreats, closure below 4.10 may create pressure downward. In withdrawals, the range of 4.08 to 4.00 may appear in the foreground.

Support levels : 4,0480 – 4,0200
Resistance levels : 4,0710 – 4,0870