{"id":47747,"date":"2019-03-26T22:39:33","date_gmt":"2019-03-27T05:39:33","guid":{"rendered":"https:\/\/drduru.com\/onetwentytwo\/?p=47747"},"modified":"2019-03-26T22:45:52","modified_gmt":"2019-03-27T05:45:52","slug":"turkish-lira-reverses-weakness-cbrt-gets-more-aggressive","status":"publish","type":"post","link":"https:\/\/drduru.com\/onetwentytwo\/2019\/03\/26\/turkish-lira-reverses-weakness-cbrt-gets-more-aggressive\/","title":{"rendered":"Forex Critical: Turkish Lira Reverses Weakness As CBRT Gets More Aggressive"},"content":{"rendered":"\n<p>The problem with pattern-matching in financial markets is that &#8220;<b>THIS TIME<\/b>&#8221; could be different. Difference is exactly what happened with my latest trading plan for the Turkish lira (USD\/TRY). The well-constructed <a href=\"https:\/\/drduru.com\/onetwentytwo\/2019\/03\/24\/t2108-update-190323\/\">plans I described a few days ago<\/a> quickly hit a brick wall, forcing me to pull the cord and adjust those plans.<\/p>\n\n\n\n<p>The Central Bank of the Republic of Turkey (CBRT) announced on Sunday that <a rel=\"noreferrer noopener\" aria-label=\"it would pull out all the stops to protect &quot;price stability (opens in a new tab)\" href=\"https:\/\/www.reuters.com\/article\/turkey-cenbank\/turkey-central-bank-says-to-use-all-instruments-to-maintain-price-stability-idUSI7N20L077\" target=\"_blank\">it would pull out all the stops to protect &#8220;price stability<\/a>.&#8221; Those measures were apparently quite effective; indeed, <strong>extra<\/strong> effective. As the Turkish lira quickly regained strength, I switched my plans to short some more EUR\/TRY. I decided to ride the position downward, but the move happened a lot faster than I could have imagined. I closed out the position in two steps with the bulk of it happening after EUR\/TRY bounced perfectly off the 6.0 level. Now, I am back to square one as USD\/TRY trades currently below its 50-day moving average and a complete reversal of the March breakout.<\/p>\n\n\n\n<figure class=\"wp-block-image\"><img loading=\"lazy\" decoding=\"async\" width=\"920\" height=\"569\" src=\"https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2019\/03\/190326_USDTRY.png\" alt=\"The U.S. dollar versus the Turkish lira (USD\/TRY) quickly reversed its 200DMA breakout with sellers zipping right past two breakout points and 50DMA support.\" class=\"wp-image-47750\" srcset=\"https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2019\/03\/190326_USDTRY.png 920w, https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2019\/03\/190326_USDTRY-768x475.png 768w\" sizes=\"auto, (max-width: 920px) 100vw, 920px\" \/><figcaption>The U.S. dollar versus the Turkish lira (USD\/TRY) quickly reversed its 200DMA breakout with sellers zipping right past two breakout points and 50DMA support.<\/figcaption><\/figure>\n\n\n\n<figure class=\"wp-block-image\"><img loading=\"lazy\" decoding=\"async\" width=\"920\" height=\"569\" src=\"https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2019\/03\/190326_USDTRY-15min.png\" alt=\"The 15-minute view of USD\/TRY shows the near persistence of the pullback. Note the acceleration after the last breakout was reversed.\" class=\"wp-image-47749\" srcset=\"https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2019\/03\/190326_USDTRY-15min.png 920w, https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2019\/03\/190326_USDTRY-15min-768x475.png 768w\" sizes=\"auto, (max-width: 920px) 100vw, 920px\" \/><figcaption>The 15-minute view of USD\/TRY shows the near persistence of the pullback. Note the acceleration after the last breakout was reversed.<\/figcaption><\/figure>\n\n\n\n<figure class=\"wp-block-image\"><img loading=\"lazy\" decoding=\"async\" width=\"920\" height=\"569\" src=\"https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2019\/03\/190326_EURTRY.png\" alt=\"The euro versus the Turkish lira (EUR\/TRY) bounced off the 6.0 level after slicing through 50DMA support.ac\" class=\"wp-image-47748\" srcset=\"https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2019\/03\/190326_EURTRY.png 920w, https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2019\/03\/190326_EURTRY-768x475.png 768w\" sizes=\"auto, (max-width: 920px) 100vw, 920px\" \/><figcaption>The euro versus the Turkish lira (EUR\/TRY) bounced off the 6.0 level after slicing through 50DMA support.ac<\/figcaption><\/figure>\n\n\n\n<p style=\"text-align:center\"><strong>Source: <\/strong><a href=\"https:\/\/www.tradingview.com\/x\/AdhMGZ28\/\"><strong>TradingView<\/strong><\/a><\/p>\n\n\n\n<p>I would prefer to sit on a long position in the Turkish lira (short EUR\/TRY) and collect the large carry, but I do not think <a rel=\"noreferrer noopener\" aria-label=\"economic conditions (opens in a new tab)\" href=\"https:\/\/ahvalnews.com\/turkish-lira\/liras-losses-signal-new-bout-troubles-turkish-economy\" target=\"_blank\">economic conditions<\/a> can sustain a stronger currency or the large yield on the currency. Turkey&#8217;s reserves continue to drain at a fast clip (the reserves plunged  <br>$6.3B to $28.5B just in the previous two weeks), and the CBRT is sure to face renewed political pressure to ease monetary policy at some point. <\/p>\n\n\n\n<p>My current positioning assumes that the recent low on USD\/TRY will continue to hold as support. In the meantime, I will be flipping smaller short positions on EUR\/TRY. I am keeping the short positions smaller than the last &#8220;phase&#8221; of trading so that when the next bout of weakness happens in the lira, I will be more prepared to take profits on my long USD\/TRY.<\/p>\n\n\n\n<p>Be careful out there!<\/p>\n\n\n\n<p>Full disclosure: long USD\/TRY, short EUR\/TRY<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The problem with pattern-matching in financial markets is that &#8220;THIS TIME&#8221; could be different. Difference is exactly what happened with my latest trading plan for the Turkish lira (USD\/TRY). The well-constructed plans I described a few days ago quickly hit a brick wall, forcing me to pull the cord and adjust those plans. The Central &#8230; <a title=\"Forex Critical: Turkish Lira Reverses Weakness As CBRT Gets More Aggressive\" class=\"read-more\" href=\"https:\/\/drduru.com\/onetwentytwo\/2019\/03\/26\/turkish-lira-reverses-weakness-cbrt-gets-more-aggressive\/\">Read more<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[483,482,20,62,1417],"tags":[1571,1572,1808,115,1308,1309],"class_list":["post-47747","post","type-post","status-publish","format-standard","hentry","category-breakdown","category-breakout","category-forex","category-technical-analysis","category-turkey","tag-cbrt","tag-central-bank-of-the-republic-of-turkey","tag-eurtry","tag-monetary-policy","tag-turkish-lira","tag-usdtry"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Forex Critical: Turkish Lira Reverses Weakness As CBRT Gets More Aggressive - ONE-TWENTY TWO: Trading Financial Markets<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/drduru.com\/onetwentytwo\/2019\/03\/26\/turkish-lira-reverses-weakness-cbrt-gets-more-aggressive\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Forex Critical: Turkish Lira Reverses Weakness As CBRT Gets More Aggressive - ONE-TWENTY TWO: Trading Financial Markets\" \/>\n<meta property=\"og:description\" content=\"The problem with pattern-matching in financial markets is that &#8220;THIS TIME&#8221; could be different. Difference is exactly what happened with my latest trading plan for the Turkish lira (USD\/TRY). The well-constructed plans I described a few days ago quickly hit a brick wall, forcing me to pull the cord and adjust those plans. The Central ... 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Difference is exactly what happened with my latest trading plan for the Turkish lira (USD\/TRY). The well-constructed plans I described a few days ago quickly hit a brick wall, forcing me to pull the cord and adjust those plans. The Central ... 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ONE-TWENTY TWO: Trading Financial Markets","isPartOf":{"@id":"https:\/\/drduru.com\/onetwentytwo\/#website"},"primaryImageOfPage":{"@id":"https:\/\/drduru.com\/onetwentytwo\/2019\/03\/26\/turkish-lira-reverses-weakness-cbrt-gets-more-aggressive\/#primaryimage"},"image":{"@id":"https:\/\/drduru.com\/onetwentytwo\/2019\/03\/26\/turkish-lira-reverses-weakness-cbrt-gets-more-aggressive\/#primaryimage"},"thumbnailUrl":"https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2019\/03\/190326_USDTRY.png","datePublished":"2019-03-27T05:39:33+00:00","dateModified":"2019-03-27T05:45:52+00:00","breadcrumb":{"@id":"https:\/\/drduru.com\/onetwentytwo\/2019\/03\/26\/turkish-lira-reverses-weakness-cbrt-gets-more-aggressive\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/drduru.com\/onetwentytwo\/2019\/03\/26\/turkish-lira-reverses-weakness-cbrt-gets-more-aggressive\/"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/drduru.com\/onetwentytwo\/2019\/03\/26\/turkish-lira-reverses-weakness-cbrt-gets-more-aggressive\/#primaryimage","url":"https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2019\/03\/190326_USDTRY.png","contentUrl":"https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2019\/03\/190326_USDTRY.png","width":920,"height":569,"caption":"The U.S. dollar versus the Turkish lira (USD\/TRY) quickly reversed its 200DMA breakout with sellers zipping right past two breakout points and 50DMA support."},{"@type":"BreadcrumbList","@id":"https:\/\/drduru.com\/onetwentytwo\/2019\/03\/26\/turkish-lira-reverses-weakness-cbrt-gets-more-aggressive\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/drduru.com\/onetwentytwo\/"},{"@type":"ListItem","position":2,"name":"Forex Critical: Turkish Lira Reverses Weakness As CBRT Gets More Aggressive"}]},{"@type":"WebSite","@id":"https:\/\/drduru.com\/onetwentytwo\/#website","url":"https:\/\/drduru.com\/onetwentytwo\/","name":"ONE-TWENTY TWO: Trading Financial Markets","description":"Exploring the poetry in financial markets for students of money and economy since the year 2000.","publisher":{"@id":"https:\/\/drduru.com\/onetwentytwo\/#\/schema\/person\/d9569fde6c701b021a8d958f775be9a0"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/drduru.com\/onetwentytwo\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":["Person","Organization"],"@id":"https:\/\/drduru.com\/onetwentytwo\/#\/schema\/person\/d9569fde6c701b021a8d958f775be9a0","name":"Dr. Duru","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2018\/09\/cropped-masthead-header.jpg","url":"https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2018\/09\/cropped-masthead-header.jpg","contentUrl":"https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2018\/09\/cropped-masthead-header.jpg","width":900,"height":100,"caption":"Dr. Duru"},"logo":{"@id":"https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2018\/09\/cropped-masthead-header.jpg"},"sameAs":["http:\/\/www.drduru.com\/onetwentytwo","https:\/\/www.instagram.com\/drduru_market_breadth\/","https:\/\/x.com\/drduru"]}]}},"_links":{"self":[{"href":"https:\/\/drduru.com\/onetwentytwo\/wp-json\/wp\/v2\/posts\/47747","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/drduru.com\/onetwentytwo\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/drduru.com\/onetwentytwo\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/drduru.com\/onetwentytwo\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/drduru.com\/onetwentytwo\/wp-json\/wp\/v2\/comments?post=47747"}],"version-history":[{"count":3,"href":"https:\/\/drduru.com\/onetwentytwo\/wp-json\/wp\/v2\/posts\/47747\/revisions"}],"predecessor-version":[{"id":47753,"href":"https:\/\/drduru.com\/onetwentytwo\/wp-json\/wp\/v2\/posts\/47747\/revisions\/47753"}],"wp:attachment":[{"href":"https:\/\/drduru.com\/onetwentytwo\/wp-json\/wp\/v2\/media?parent=47747"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/drduru.com\/onetwentytwo\/wp-json\/wp\/v2\/categories?post=47747"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/drduru.com\/onetwentytwo\/wp-json\/wp\/v2\/tags?post=47747"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}