USD/TRY Price Analysis: Bounces-off key support near 9.50, record high back in sight

• USD/TRY attempts a bounce after Monday’s 1% sell-off.
• Erdogan-Biden talks offer a temporary reprieve to TRY bulls.
• Bullish RSI on the 4H chart re-ignites the buying momentum.

USD/TRY is picking up fresh bids on Tuesday, reversing a temporary reversal seen a day before, as the US dollar bulls are looking to regain control ahead of Wednesday’s Fed decision.

Monday’s 1% pullback in the currency pair could be attributed to a resurgent demand for the Turkish lira after the Turkish President Tayyip Erdogan and US President Joe Biden discussed a potential fighter jet deal in Rome over the weekend.

From a short-term technical perspective, USD/TRY is attempting a recovery above 9.50 levels after having confirmed a symmetrical triangle breakdown on the four-hour chart in early European hours on Monday.

The price has managed to find strong bids near 9.55, where the 50-Simple Moving Average (DMA) converges with the 21-SMA.

The next upside hurdle to the recovery momentum can be seen at Friday’s high of 9.63. Further up, the bulls will look to retest the record highs of 9.85

The Relative Strength Index (RSI) has pierced through the midline for the upside, suggesting that the renewed uptick is likely to find legs in the upcoming sessions.

USD/TRY: Four-hour chart

On the downside, a sustained break below the abovementioned critical support near 9.50 will trigger a fresh sell-off towards the October 26 lows of 9.41.

The upward-sloping 100-SMA at 9.35 could then come to the rescue of the bullish traders.