USD/TRY Price Analysis: 21-DMA limits the correction from all-time highs of $8.5145

USD/TRY rescued by the 21-DMA support as the correction stalls.
The Turkish lira rebounded after lifting of the lockdown restriction.
The spot ignores broad USD weakness as technical setup favors bulls.

Dhwani Mehta FXStreet

USD/TRY has paused its two-day correction from all-time highs of $8.5146, despite the relentless slide in the US dollar across the board.

The Turkish lira rebounded sharply from record lows over the last two trading sessions after the government on Monday lifted a daytime coronavirus lockdown, imposed 2-1/2 weeks ago. Although, night-time and weekend curfews remain in place.

From a near-term technical perspective, the 21-daily moving average (DMA) at $8.2977 has come to the rescue of the bulls after two straight days of decline.

A daily closing below the latter could call for a bearish reversal. Note that the price hasn’t closed below the 21-DMA since April 15.

The next significant support awaits at the April 29 low of $8.1305.

However, with the 14-day Relative Strength Index (RSI) attempting an upturn above the midline, the odds for the resumption of the uptrend are higher.

USD/TRY: Daily chart

Therefore, USD/TRY needs to recapture the $8.40 psychological level for the bulls to regain control.

Further up, the buyers will look to retest the lifetime highs above $8.51.

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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