USD/TRY Price Analysis: Further upside hinges on 10-DMA breakout
- USD/TRY remains on the front for the fourth consecutive day.
- An upward sloping trend line from late May favors buyers.
- Two-month-old previous support line adds to the upside filters.
USD/TRY extends the previous week’s rebound while portraying the four-day uptrend as buyers attack the 10-DMA hurdle surrounding 16.85 heading into Tuesday’s European session.
The recovery moves also take clues from the recently firmer RSI (14), as well as an upward sloping support line from May 23, around 16.60 by the press time.
However, the bearish MACD signals join the immediate DMA hurdle to test the upside momentum around 16.85.
In a case where USD/TRY rises past 16.85, the previous support line from May 05, close to $17.20, could challenge the pair buyers before directing them to the yearly high marked in May around 17.50.
Meanwhile, pullback moves could aim for the 16.60 support retest before the latest swing low surrounding 16.10.
Also likely to challenge the USD/TRY bears is the 16.00 threshold, a break of which could signal the pair’s further downside targeting 61.8% Fibonacci retracement level of May-June upside, near 15.77.
To sum up, USD/TRY remains on the upward trajectory but the bulls need to justify their strength.
USD/TRY: Daily chart
Trend: Further upside expected