USD/TRY Price Analysis: Bullish Flag shouts more upside, 18.00 eyed

• Advancing 20-and 50-period EMAs add to the upside filters.
• The formation of a Bullish Flag is indicating a sheer upside momentum ahead.
• A bullish range shift by the RSI (14) is hinting for more upside.

The USD/TRY pair has witnessed a firmer rebound in the early European session after hitting a low of 17.19. The asset observed a vertical upside on Wednesday from a low of 16.98. A follow-up buying has turned into a sideways move in a narrow range of 17.17-17.25.

On an hourly scale, the asset is forming a Bullish Flag that signals a continuation of bullish momentum after a rangebound phase. Usually, a consolidation phase denotes intensive buying interest from the market participants, which prefer to enter an auction after the establishment of the trend.

The greenback bulls have successfully defended the 20-period Exponential Moving Averages (EMA) at 17.20. Also, the 50-EMA at 17.11 is scaling higher, which favors an upside bias.

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

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.

On the flip side, Turkiye lira bulls could gain momentum if the asset drops below the 50-EMA at 17.11. This will drag the asset towards Wednesday’s low at 16.98. Violation of Wednesday’s low will further push the asset lower to Monday’s low at 16.73.

USD/TRY hourly chart