USD/TRY Price Analysis: Yearly resistance, overbought RSI to test bulls above 16.00
- USD/TRY remains on the front foot around five-month high, prints a four-day uptrend.
- Overbought RSI (14), nearby key hurdle challenge further upside.
- 10-DMA, 61.8% Fibonacci retracement test short-term declines.
USD/TRY stays firmer around the highest levels level of 2022 as bulls flirt with the 16.15 level during early Wednesday morning in Europe.
In doing so, the Turkish lira (TRY) pair justifies overbought RSI (14) conditions, as well as the inability to cross an upward sloping resistance line from late December 2021.
That said, the 10-DMA level of 15.82 challenges immediate pullback moves of the USD/TRY prices ahead of the 61.8% Fibonacci retracement level of December 2021, close to 15.27.
In a case where USD/TRY drops below 15.57, the odds of the pair’s extended south-run towards March’s high near 15.05, as well as to the 15.00 threshold, can’t be ruled out.
Meanwhile, a clear break of the aforementioned yearly resistance line, near $16.26 by the press time, will aim for the 16.50 and 17.00 round figures ahead of challenging the all-time high flashed in 2021 around 18.35.
Overall, USD/TRY remains on the front foot with a limited upside gap.
USD/TRY: Daily chart
Trend: Pullback expected