USDTRY surged to break yet another all-time high on Wednesday, at 4.9270, before it pulled back somewhat towards the 4.8500 area. The pair is set to complete its fourth straight week of advances, and while it may correct slightly lower in the next days since the latest up-move seems a little overextended, the broader bias remains convincingly bullish.
Taking a look at momentum oscillators, the RSI – although already in overbought territory – continues to point to the upside, detecting very strong positive momentum. The MACD, already above both its zero and red trigger lines, remains at extremely elevated levels.
Should the pair continue to advance, immediate resistance may be found at the all-time high of 4.9270 achieved on May 23. An upside break of that hurdle would bring prices into uncharted territory once again, with the next level to come into play being the 5.000 handle, which may hold psychological importance. Even higher, sell orders may be found near the round figures of 5.10 and 5.20.
On the other hand, should prices correct lower, initial support to declines could come around the 4.750 mark. Although not visible on the daily chart, the pair rebounded from there on May 23, before it surged to touch all-time highs. A downside break of that area could pave the way for 4.500, which halted the advance on May 16. Even lower, buy orders may be found near the 4.370 and subsequently around the 4.220 zones, defined by the high of May 9 and low of May 11 respectively.
