USD/TRY Price Analysis: Buyers defy overbought conditions, with bull cross in play

USD/TRY extends its six-day winning streak above 9.00
Turkish central bank drama continues to overwhelm lira bulls.
Bull cross outweighs overbought RSI conditions, with more record highs in the making.

Dhwani Mehta FXStreet

The buying interest around USD/TRY remains unabated, as the price extends its six-day winning streak, making fresh lifetime highs near the 9.25 region.

The upside in the spot got an additional boost, as the lira slumped to record lows after the question on the Turkish central bank’s credibility was raised once again.

This came after the country’s President Tayyip Erdoğan sacked deputy central bank governors Semih Tumen and Ugur Namik Kucuk as well as Abdullah Yavas, a member of the bank’s monetary policy committee early Thursday.

Looking at USD/TRY technically, the price remains on track to touch the 9.50 psychological barrier, with the bullish crossover in play on the daily time frame.

The 50-Daily Moving Average (DMA) crossed the 100-DMA for the upside on Wednesday, triggering a fresh leg higher in the cross.

Given that, the bulls seem to ignore a sign of caution, indicated by the overbought Relative Strength Index (RSI) conditions on the daily chart.

USD/TRY: Daily chart

On the downside, immediate support awaits at the 9.00 threshold, below that a drop towards the upward-pointing 21-DMA at 8.88 cannot be ruled out.

If the bearish pressure intensifies, then the sellers will target the September 24 lows of 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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