The Turkish lira recovered to 10.25 on 23 December but cracks have re-emerged since, causing losses to snowball again to 13.60. Economists at Société Générale expect the USD/TRY to consolidate within a 12.50-16.45 range.

Important support sits at 10.25

“After recent sharp up / down swings, a phase of sideways consolidation is not ruled out.” 

“The pair is expected to evolve within a range near term, the bounds could be at 12.50/12.45 and 16.45, the 76.4% retracement of the pullback.” 

“Recent trough at 10.25 could be an important support.”