USDTRY surged to a fresh record high today, hitting the 7.4390 barrier after surpassing the strong 7.4067 barrier. The price has been in an ascending movement since December 2018; however, the technical indicators are suggesting an overbought market. The RSI is touching the 70 level, while the MACD is losing momentum below its trigger line.
Should the pair manage to strengthen its positive momentum, the next resistance could come around the 161.8% Fibonacci extension level of the down leg from 7.6619 to 6.6667 at 7.6341. Above this level, the next target could be the 8.0000 psychological level.
However, if prices are unable to hold the bullish outlook, the risk would shift back to the downside with the 7.4067 support and the 20-day simple moving average (SMA) at 7.3524 into focus. A drop below these levels would signal a bearish correction touching the 7.1950 line and the 50-day SMA at 7.0965. The next key support to watch lower is 6.8065.
To sum up, USDTRY has remained in a positive view, but any declines below the Ichimoku cloud and the 200-day SMA at 6.5795 may change this outlook.
