USD/TRY Price Analysis: Bounces off 21-DMA to regain traction to 8.8000

USD/TRY snaps two-day downtrend, edges higher around intraday high of late.
Firmer RSI, Momentum recovery backs the run-up targeting record top.
Ascending trend line from mid-April becomes crucial support.

Anil Panchal FXStreet

USD/TRY eases from intraday high, up 0.20% on a day around 8.6800, heading into Friday’s European session. In doing so, the Turkish lira (TRY) pair prints a U-turn from 21-DMA following a two-day downturn.

The recovery moves gain support from firmer RSI conditions, as well as the Momentum line that signals consolidation of pullback moves like early June.

That said, the weekly resistance line near 8.7100 gains the market’s attention as the immediate upside hurdle ahead of the record top surrounding 8.8000.

It should, however, be noted that the quote’s upside past 8.8000 will be probed by the 8.8050 level before activating another north-run towards the 9.0000 psychological magnet.

Meanwhile, a downside break of the 21-DMA, around 8.6380, may take rests near the early May tops surrounding 8.5150 and April’s high of 8.4850.

In a case where the USD/TRY bears remain dominant below 8.4850, a 2.5-month-old support line near 8.3720 will be crucial to watch.

USD/TRY: Daily chart

Trend: Bullish

Author

Anil Panchal

FXStreet

Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.

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