USD/TRY Price Analysis: Struggling to find a foothold above 8.60

USD/TRY faces 50-SMA resistance on its way to 200-SMA.
Bulls remain hopeful while above 21-SMA support.
RSI points north, holding into the bullish region.

Dhwani Mehta FXStreet

USD/TRY continues to find dip-buying so far this Wednesday but the buyers are struggling to make the most of the opportunity, undermined by the fresh leg down in the US dollar.

The greenback pares early gains, as the risk sentiment improves in the European session. Strong EU earnings reports overshadow the Delta covid variant-related concerns, for the time being, offering a little boost to the market sentiment while weighing on the safe-haven dollar.

From a near-term technical perspective, USD/TRY briefly regained the downward-sloping 50-Simple Moving Average (SMA) at 8.5918 to reach fresh daily highs at 8.6063.

But the bears quickly fought back control, now making it an uphill battle for the bulls to reclaim the lost ground.

Acceptance above the 50-SMA barrier will call for an advance towards the horizontal 200-SMA at 8.6291.

The next significant upside target is seen at the mildly bearish 100-SMA at 8.6405.

The Relative Strength Index (RSI) trades firmer above the central line, backing the case for additional gains.

USD/TRY: Four-hour chart

On the downside, the horizontal 21-SMA at 8.5599 is the level to the beat for the bears in the near term.

The July 20 low of 8.5133 could help limit the decline in the spot, as 8.50 remains at risk should the selling pressure intensify.

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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