Daily Analysis - 16/08/2018
Angela Merkel has reminded Turkish President Recep Tayyip Erdogan that there is a possibility for the two countries to be more than friends. While Germany will not offer any aid, the conversation will benefit both sides. Berlin wants Turkey to avoid a potential financial collapse into chaos. Merkel said in Berlin this week “No one has an interest in the economic destabilization of Turkey.”
The USDTRY fell almost 700 pips in a matter of minutes after Qatar promised to invest in Turkey on Wednesday. The pair is now below the 20 and the 50 EMA creating new lower lows and lower highs breaking also the resent support at 5.8772 level.
EURUSD is below the 50-day moving average giving the opportunity for a bearish trend continuation. The price slightly turned up to 1.1397. Now we are looking for the price to possibly break the 1.1301 level before spotting any potential bearish continuation.
Brexit fears are keeping the pair under pressure. On the technical level, the pair is still under the 50-day moving average on the daily time-frame and the momentum is still strong giving the bears the confidence they need to push it further down. Now GBPUSD is at 1.2713 and reversed about 70 pips to the upside since yesterday.
