USD/TRY Price Analysis: Bull pennant breakout targets 9.50

USD/TRY has more room to rise, with fresh record highs in sight.
The spot charted a bull pennant breakout on the 1D chart last Friday.
RSI stays overbought but impending bull cross keeps buyers hopeful.

Dhwani Mehta FXStreet

USD/TRY is hovering close to fresh all-time highs of 9.04, as the bulls gather strength for the next push higher.

In doing so, the pair extends its bullish momentum into the third straight day, eyeing fresh record highs in the coming sessions.

The upside potential is well depicted by USD/TRY’s daily technical setup, which shows that the pair confirmed a bull pennant breakout on the said time frame last Friday after closing above the falling trendline resistance, then at 8.92.

With the big technical breakout, the upside opens up towards the measured target of 9.61. Ahead of that the 9.50 psychological level could come into play.

Impending bull cross, with the 50-Daily Moving Average (DMA) set to cross the 100-DMA for the upside, adds credence to a potential move higher.

However, with the 14-day Relative Strength Index (RSI) trending within the overbought territory, there remains a risk for a minor pullback before the next upswing kicks in.

USD/TRY: Daily chart

On the downside, the bull pennant resistance now turned support at 8.92 will offer immediate respite to the buyers on any pullbacks.

Further south, the original support of the bullish continuation pattern at 8.88 could challenge the buyers’ commitments.

A breach of the latter on a daily closing basis will lead to a pattern failure, opening floors for a test of the bullish 21-DMA at 8.76.

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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