• USD/TRY extends its side-trend below all-time highs of 13.92.
• Turkey’s President Erdogan called for lower rates on Wednesday.
• Bullish RSI points lower, suggesting a test of 50-SMA on the 4H chart.

USD/TRY is reversing Wednesday’s rebound, as the Turkish lira finds its feet after Turkey’s President Tayyip Erdogan’s comments-led sell-off.

Erdogan said that he “will bring inflation, exchange rate down through low-interest rates” while speaking in an interview with NTV.

Later on, he calmed markets by saying that the price hikes stemming from rising energy costs would soon stabilize.

USD/TRY jumped to intraday highs of 13.81 on his comments before retreating to finish the day at 13.69.

In Thursday’s trades in running, USD/TRY is trading listlessly, wrapped around the 21-Simple Moving Average (SMA) on the four-hour sticks at $13.69.

The Relative Strength Index (RSI) has edged slightly lower suggesting that a fresh leg lower cannot be ruled out in the session ahead.

The upward-sloping 50-SMA at 13.45 will come into the sellers’ radars.

USD/TRY: Four-hour chart

On the flip side, a four-hourly candlestick closing above 21-SMA is needed to extend the upside towards Wednesday’s high.  

Buying interest will revive above the latter, calling for a retest of the record highs at 13.96.