USD/TRY Price Analysis: Bulls are firmer above 200-EMA, Bullish Flag claims more upside

USD/TRY has sensed a cushion from the 200-EMA at 15.71.
The Bullish Flag formation signals the continuation of the upside after a rangebound move.
A 40.00-60.00 range oscillation by the RSI (14) signals a consolidation ahead.

The USD/TRY pair displays topsy-turvy moves in a narrow range of 15.90-15.95 in the Asian session after a strong rebound from Monday’s low at 15.69. On a broader note, the asset oscillates in a wider range of 15.69-15.99 after a juggernaut upside move from May’s low at 14.73.

A Bullish Flag chart formation on an hourly scale indicates a follow-up buying ahead. The asset is in a consolidation phase after a sheer upside move. Usually, an oscillation phase indicates the initiation of longs by those investors, which prefer to take positions after the establishment of a bullish bias. This represents an initiative buying action after a balancing auction.

The 200-period Exponential Moving Average (EMA) at 15.71 has acted as major support for the counter, while the 20-period EMA at 15.90 is overlapping to the prices.

Meanwhile, the Relative Strength Index (RSI) is trading back and forth in the 40.00-60.00 range, which signals a rangebound move ahead.

An upside move above the psychological resistance of 16.00 will trigger the Bullish Flag formation and will send the asset towards the 20 December 2021 opening price at 16.60, followed by the round-level resistance at 17.00.

Alternatively, a decisive slippage below Monday’s low at 15.69 will drag the asset towards May 16 low at 15.45. A breach of the latter will expose the asset to more downside towards the 9 May low at 14.92.

USD/TRY hourly chart

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