In January of 2005, a new version of the Turkish Lira was issued after the previous Lira's value fell so dramatically that the conversion was $1 to 1.5 million TRY. As the economy relies on foreign cash looking to earn short term profits on higher interest rates, any global headwinds and the subsequent risk off environment can lead to massive depreciations of the Lira. Although the nation wishes to join the Euro-Zone, political conditions in Turkey and economic issues in the EU continue to delay the process.
Last week USD/TRY corrected higher then started a sideways move. Here are the key chart points traders may need to consider to move in a clear direction