USD/TRY Price Analysis: Hovers around all-time highs at 18.40, mild correction seems favored

• USD/TRY is auctioning around its all-time highs recorded at 18.41.
• Exhaustion in upside momentum could lead to a mild correction further.
• The RSI (14) is oscillating in the bullish range of 60.00-80.00 for a prolonged period.

The USD/TRY pair is attempting an upside break of the consolidation formed in a narrow range of 18.30-18.40 in the early European session. The asset has remained in the grip of bulls for the past week after establishing above the critical hurdle of 18.25. The major printed a fresh all-time high at 18.41 on Wednesday amid hawkish Federal Reserve (Fed) policy.

On a daily scale, the USD/TRY pair has refreshed the all-time highs after overstepping the 20 December 2021 high at 18.39. The asset is hovering around all-time highs at 18.40, however, signs of exhaustion in the upside momentum is favoring a mild correction ahead.

The 20-and 50-period Exponential Moving Averages (EMAs) at 18.24 and 17.95 respectively are scaling higher, which adds to the upside filters.

Also, the Relative Strength Index (RSI) (14) is oscillating in the bullish range of 60.00-80.00 for a prolonged period, which indicates a continuation of upside momentum.

A decisive slippage below the 20-EMA at 18.24 will drag the asset towards the round-level support at 18.00, followed by August 9 low at 17.56.

On the contrary, the greenback bulls will shift into the unchartered territory after overstepping the fresh all-time highs at 18.41. An occurrence of the same will send the asset towards the psychological resistance at 19.00 followed by the round-level resistance at 19.50.

USD/TRY daily chart