USD/TRY Price Analysis: Grinds between 21-DMA and monthly resistance line

USD/TRY extends short-term sideways grind, recently challenges bears.
50-DMA adds to the downside filters, bulls need validation from November’s high.
Momentum line’s retreat hints at bears' struggles to retake controls.

Anil Panchal FXStreet

USD/TRY remains sidelined around $13.48, keeping two-week-old momentum between 21-DMA and descending trend line resistance. That said, the quote eases to $13.47 during Wednesday’s Asian session.

The Turkish lira (TRY) pair’s weakness aims to retest the 21-DMA level of $13.46, a break of which will highlight the 50-DMA, around $13.20, as the next support.

Should USD/TRY bears keep reins past $13.20, the 23.6% Fibonacci retracement of December 2021 moves, around $12.20, can’t be ruled out. However, the $13.00 threshold may offer an intermediate halt during the fall.

Alternatively, an upside clearance of the stated resistance line, near $13.72, will aim for the tops marked during late November and December 2021, around $13.95 and $14.15 in that order.

In a case where USD/TRY buyers remain dominant past $14.15, the 61.8% Fibo. level of $15.26 may offer an intermediate halt during the expected rally targeting the $20.00 psychological magnet.

It should be noted that the Momentum line recently retreats from the higher area and the prices are also losing bullish bias, which in turn keeps sellers hopeful.

USD/TRY: Daily chart

Trend: Sideways

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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