{"id":131880,"date":"2018-08-13T14:28:31","date_gmt":"2018-08-13T18:28:31","guid":{"rendered":"https:\/\/www.countingpips.com\/?p=131880"},"modified":"2018-08-13T14:28:31","modified_gmt":"2018-08-13T18:28:31","slug":"lira-collapse-continues-gold-slides-while-euro-under-pressure","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2018\/08\/lira-collapse-continues-gold-slides-while-euro-under-pressure\/","title":{"rendered":"Lira collapse continues, Gold slides while Euro under pressure"},"content":{"rendered":"
August 13, 2018<\/div>
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Article by ForexTime<\/a><\/p>\n

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The Turkish Lira was treated without mercy by sellers on Monday after President Erdogan warned the country was in an \u2018economic war\u2019.<\/p>\n

Investors have become extremely wary of holding the Turkish Lira as concerns mount over the nation descending into an economic crisis. External factors in the form of an appreciating Dollar has accelerated the downside while domestic risks revolving around high inflation and political instability simply compounded to the Lira\u2019s woes. With the USDTYR punching above the psychological 7.00 level amid the chaos in Turkey, further losses could be on the cards. Technical traders\u00a0will continue to closely observe if the USDTRY is able to secure a solid monthly close above 7.00. With no floor in sight for the Lira’s decline, it will be interesting to see how much further prices depreciate beyond 7.00.<\/p>\n

Gold sinks below $1200\u00a0<\/strong><\/p>\n

It is remarkable how Gold prices tumbled below $1200 today despite the financial crisis in Turkey weighing on global sentiment and fuelling risk aversion.<\/p>\n

For those who may be wondering why Gold continues to depreciate amid the risk-off mood, the answer can be found in the Dollar\u2019s performance. An appreciating Dollar continues to weigh heavily on Gold while expectations of higher US interest rates have sabotaged any meaningful upside gains on the yellow metal. With the Greenback poised to venture higher amid the risk aversion, Gold is likely to be in store for further punishment this week. In regards to the technical picture, prices\u00a0remains heavily bearish on the daily charts. Sustained weakness below $1200 could encourage a decline towards $1185 and $1170, respectively.<\/p>\n

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EURUSD pressured by Turkey contagion risks\u00a0<\/strong><\/p>\n

Concerns over Europe being heavily exposed to the Turkish crisis has translated to Euro weakness.<\/p>\n

The EURUSD was under pressure today as is likely to trade lower this week as the combination of Euro weakness and Dollar strength encourages bears to instil renewed rounds of selling on the EURUSD. Focusing on the technical picture, the EURUSD is heavily bearish on the daily charts as there have been consistently lower lows and lower highs. Sustained weakness below the 1.1435 resistance level could invite a decline towards 1.1360 and 1.1300, respectively. For bulls to jump back into the game, the EURUSD needs to break back above 1.1435.<\/p>\n

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GBPUSD trapped by hard Brexit fears\u00a0<\/strong><\/p>\n

The British Pound has been heavily bruised\u00a0by hard Brexit fears while an appreciating Dollar continues to rub salt on the wound.<\/p>\n

Sentiment remains bearish towards the Pound amid Brexit uncertainty and this continues to be reflected in the currency\u2019s bearish price action. With the Dollar heavily supported by US rate hike expectations, the GBPUSD\u2019s outlook remains tilted to the downside. Focusing on the technical picture, the currency is unquestionably bearish on the daily charts. Technical lagging indicators such as the MACD point to the downside while prices remain below the 20 simple moving average. A technical breakdown under 1.2800 could trigger a decline towards 1.2710 and 1.2630, respectively.<\/p>\n

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Disclaimer:\u00a0<\/strong>The content in this article comprises personal opinions and should not be construed as containing personal and\/or other investment advice and\/or an offer of and\/or solicitation for any transactions in financial instruments and\/or a guarantee and\/or prediction of future performance. ForexTime (FXTM), its affiliates, agents, directors, officers or employees do not guarantee the accuracy, validity, timeliness or completeness, of any information or data made available and assume no liability as to any loss arising from any investment based on the same.<\/em><\/p>\n

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\"Forex-Time-Logo\"Article by ForexTime<\/a><\/span><\/strong><\/p>\n

ForexTime Ltd (FXTM)<\/strong> is an award winning international online forex broker regulated by CySEC 185\/12 www.forextime.com<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Article by ForexTime The Turkish Lira was treated without mercy by sellers on Monday after President Erdogan warned the country was in an \u2018economic war\u2019. Investors have become extremely wary of holding the Turkish Lira as concerns mount over the nation descending into an economic crisis. External factors in the form of an appreciating Dollar […]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-131880","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/131880","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/comments?post=131880"}],"version-history":[{"count":2,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/131880\/revisions"}],"predecessor-version":[{"id":131882,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/131880\/revisions\/131882"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=131880"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=131880"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=131880"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}