Washington suffered a setback in its attempt to strengthen relations with Turkey when Ankara recalled its US ambassador on Thursday night.

The move came after a congressional panel backed a resolution describing the Ottoman-era massacres of 1.5m Armenians as “genocide”. Ankara has long warned that such a vote could harm US-Turkish relations and efforts to establish diplomatic ties between Turkey and Armenia.

“We condemn this draft resolution, accusing the Turkish nation with a crime that it has not committed,” said the Turkish government. “This decision, which could adversely affect our co-operation on a wide common agenda with the US, also regrettably attests to a lack of strategic vision.”

The narrow 23-22 vote in the House foreign affairs committee came after a last-minute plea by Hillary Clinton, secretary of state, who argued it would endanger a Turkish-Armenian agreement she helped broker last October.

Overnight news regarding to Turkish-Armenian and US ties putting pressure on Turkish Lira and with a possible worse than expected NFP numbers, there is a greater risk of USDTRY breaking the range trading of 1.4450-1.5620.

With all respect to knee-jerk effect of selling here to catch the topside may not work this time as daily oscillators confirming the bullish momentum in addition to bullish hammer and bullish kicker in the last 5 trading sessions.

The broken support on weekly charts in June, 2009 at 1.5570 also tend to cap the topside and will bring good supply for the Turkish lovers while a daily close above 1.5510 will be is a good sign as well but a long squeeze risk is possible down to 1.5365-85 support at the same time.

So all in all,  go long on break of 1.5570;  stop at 1.5365 and target 1.5860 ( 38.2% retrace of  1.8243 to 1.4385) & 1.6315 (50% retrace of 1.8243 to 1.4385)