USD/TRY Price Analysis: Firmer rebound from 17.00 warrants more upside

• The presence of buying tails near 17.00 is advocating for more upside.
• The formation of a Bullish Flag has strengthened the greenback bulls.
• Advancing 20- and 50-EMAs add to the upside filters.

The USD/TRY pair is oscillating back and forth in a narrow range of 17.18-17.21 in the early European session. The pair has remained in the grip of bulls for the last week after overstepping Friday’s high at 16.54.

The presence of sufficient buying tails near the psychological support of 17.00 is advancing the odds of an initiative buying action going forward. On an hourly scale, the asset is forming a Bullish Flag that signals a consolidation phase after a vertical upside move. The consolidation phase denotes inventory purchase by the initiative buyers, which prefer to enter in an auction after the establishment of a bullish bias.

Advancing 20- and 50-period Exponential Moving Averages (EMAs) at 17.14 and 16.99 respectively add to the upside filters.

Also, the Relative Strength Index (RSI) (14) is oscillating in the bullish range of 60.00-80.00, which signals that the upside momentum is intact.

Going forward, a firmer upside move above Wednesday’s high at 17.21 will drive the asset towards the round-level resistance at 17.50, followed by the psychological resistance at 18.00.

Alternatively, the Turkish lira bulls could gain control if the asset drops below Wednesday’s low at 17.03. An occurrence of the same will drag the asset towards Tuesday’s high at 16.87. A slippage below Tuesday’s high will bring more downside towards Monday’s high at 16.65.

USD/TRY hourly chart