USD/TRY Price Analysis: Hits fresh record highs just hairline short of 14.00
- USD/TRY keeps pushing higher, recapturing 14.00 is evitable.
- Turkey’s central bank intervention fails to stem the lira’s selling spiral.
- The spot has room to rise as RSI is well off the extremely overbought zone.
USD/TRY is flirting with fresh all-time highs of 13.96 on Monday, rallying for the third straight day amid the financial market unitability and central bank woes in Turkey.
The Turkish central bank (CBRT) intervened in the forex exchange market for the third time this month but its efforts failed to arrest the freefall in the lira.
“The monetary authority said Friday it sold foreign exchange because of “unhealthy” price formations, echoing President Recep Tayyip Erdogan’s words to describe the recent turbulence,” per Bloomberg.
The local currency is down roughly 40% since end-September, looking to recapture 14.00 and beyond, as the daily technical setup points to more upside in the offing.
USD/TRY is breaking higher from the recent consolidative phase seen ever since the spot hit the previous record highs at 13.96 on November 30.
The next stop for the bulls is pegged at the 14.50 psychological level if the 14.00 barrier is taken out.
The Relative Strength Index (RSI) is trading within the overbought region but well off the extreme conditions, suggesting that there is scope for a fresh upswing in the near term.
USD/TRY: Daily chart
On the flip side, the recent range lows around 13.40 could cap any immediate retracement.
Selling interest will revive below the latter, calling for a retest of the upward-pointing 21-Daily Moving Average (DMA) at 12.56.