Forex News

08:52:13 19-08-2022

USD/TRY Price Analysis: Bulls keep post-CBRT gains with eyes on record high above 18.00

  • USD/TRY stays mildly bid at yearly peak, prints three-day uptrend.
  • Upside break of 12-day-old resistance favor buyers to aim for the late 2021 peak.
  • Two-month-old ascending resistance line restricts immediate upside.
  • Overbought RSI, sluggish MACD suggests a bumpy road for the bulls.

USD/TRY remains firmer around 18.10 during early Friday morning in Europe. In doing so, the Turkish lira (TRY) pair keeps the previous day’s upside momentum around the yearly top.

It’s worth noting that the quote crossed a two-week-old resistance after the Central Bank of the Republic of Türkiye (CBRT) surprised markets by announcing 100 basis points (bps) of a rate cut.

Technically, a clear upside break of the aforementioned horizontal resistance and higher low formation on USD/TRY daily closings keep the pair buyers hopeful of refreshing the all-time high marked in late 2021 at around 18.25.

However, an upward sloping resistance line from June, near 18.27 by the press time, could join the overbought RSI (14) and sluggish MACD to challenge the pair buyers afterward.

In a case where USD/TRY stays firmer past 18.27, the odds of witnessing a gradual run-up towards the 20.00 psychological magnet can’t be ruled out.

Alternatively, the resistance-turned-support around 18.00 restricts the immediate downside of the USD/TRY prices.

Following that, the 21-DMA support of 17.93 could test the bears before giving them control.

USD/TRY: Daily chart

Trend: Limited upside expected

News provided by the portal FXStreet