Momentum loss favors Turkiye lira bulls

  • The momentum oscillator, RSI (14) is displaying a loss of momentum on the upside.
  • Advancing and untouched 50-EMA supporting the greenback bulls.
  • The RSI (14) has also shifted into the 40.00-60.00 range.

The USD/TRY pair is auctioning sideways in a narrow range of 17.20-17.24 in the Asian session. The major is displaying some exhaustion signals after double attempts of overstepping the critical hurdle of 17.30 on Thursday.

Exhaustion in the upside trend has weakened the greenback bulls. The momentum oscillator, Relative Strength Index (RSI) has displayed a loss of momentum towards the north. The asset formed higher highs continuously while the RSI (14) formed lower highs, which signals that the greenback bulls are out of gas now.

Also, the RSI (14) has shifted into the 40.00-60.00 range, which signals that the Turkiye lira bulls are not more bearish now.

The Turkiye lira bulls are continuously attacking the 20-period Exponential Moving Average (EMA) at 17.25. While the 50-EMA at 17.19 is advancing and is untouched, this indicates that the short-term trend is still favoring bulls.

A decisive drop below the critical support of Thursday’s low at 17.18 will drag the asset towards May Wednesday’s low at 16.98, followed by Monday’s low at 16.73.

Alternatively, a break above Wednesday’s high at 17.26 will trigger the upside break of the Bullish Flag chart pattern, which will drive the asset towards the round level resistance at 17.50, followed by the 20 December 2021 high at 18.26.

USD/TRY hourly chart

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