USD/TRY Price Analysis: Consolidates above mid-23.00s, bullish potential intact

• USD/TRY remains confined in a familiar trading range held over the past week or so.
• Overbought oscillators on short-term charts hold back bulls from placing fresh bets.
• A convincing break below the 23.00 mark could negate the near-term positive outlook.

The USD/TRY pair extends its sideways consolidative price move through the first half of the European session and remains confined in a familiar range held over the past week or so. The pair currently trades around the 23.65-23.70 region, up over 0.40% for the day and well within the striking distance of the all-time high touched on Tuesday.

Against the backdrop of the recent blowout rally, the range-bound price action could be categorized as a consolidation phase in the wake of extremely overbought technical indicators on short-term charts. Nevertheless, the setup still favours bullish traders and supports prospects for an extension of the move-up witnessed over the past month or so. That said, the recent failures near the 24.00 mark make it prudent to wait for a sustained strength beyond the said handle before placing fresh bets.

In the meantime, any meaningful slide below the 23.50 level is more likely to find decent support and remain cushioned near the 23.00 mark, or the low touched last Thursday. A convincing break below, however, might prompt aggressive long-unwinding trade and pave the way for deeper losses. The USD/TRY pair might then accelerate the fall towards the 22.80 horizontal zone en route to the 22.30-22.25 intermediate support before eventually dropping back to the 22.00 round-figure mark.

USD/TRY 4-hour chart