USD/TRY Price Analysis: Pulls back from 24.00 neighbourhood, or fresh all-time high

• USD/TRY retreats from a fresh all-time high, though the downside seems cushioned.
• Extremely overstretched oscillators prompt traders to take some profits off the table.
• Any meaningful corrective decline might still attract fresh buyers and remain limited.

The USD/TRY pair eases from the 24.00 neighbourhood, or a fresh all-time high touched during the Asian session on Thursday, though any meaningful corrective decline still seems elusive. Spot price currently trades around the 23.30 area, down just over 0.10% for the day.

From a technical perspective, extremely overstretched oscillators on daily/weekly/monthly charts turn out to be a key factor holding back traders from placing fresh bearish bets around the Turkish Lira. Any subsequent slide in the USD/TRY pair, however, is more likely to attract fresh buyers and remain cushioned near the 23.00 mark.

The said handle should act as a pivotal point for intraday traders, which if broken decisively might prompt some long-unwinding trade and pave the way for deeper losses. The USD/TRY pair might then accelerate the fall towards the 22.80 horizontal support en route to the 22.30-22.25 region before dropping back to the 22.00 round figure.

On the flip side, bulls might now await a sustained strength beyond the 24.00 mark before placing fresh bets and positioning for an extension of the recent blowout rally witnessed over the past two weeks or so. It is worth recalling that the USD/TRY pair has climbed nearly 17% following President Erdogan’s win at the general elections on May 28.

USD/TRY 1-hour chart