USD/TRY Price Analysis: Bears pause around seven-week low amid oversold RSI
- USD/TRY seesaws in a narrow range after four-day downtrend.
- Sustained break of key support lines, 100-DMA keeps sellers hopeful.
- Bulls need a clear break of $8.4550 for fresh entry.
- Turkish CPI for July may extend corrective pullback.
USD/TRY treads water around $8.3563 amid early Tuesday. The Turkish lira (TRY) pair dropped to the lowest since June 14 after breaking ascending trend lines from late April and mid-February, as well as 100-DMA, the previous day.
However, oversold RSI conditions seem to probe the pair sellers around multi-day low, not to forget the pre-data caution. That said, Turkey is slated to release July month’s Consumer Price Index (CPI) at 07:00 GMT on Tuesday. Market consensus favors softer prints of 1.54% on MoM versus firmer yearly figures of 18.5%.
Even if the data trigger the corrective pullback towards challenging the immediate hurdle, namely 100-DMA level of $8.3825, USD/TRY bulls remain unconvinced till the quote stays below a convergence of the previous support lines near $8.4550.
Following that, a descending resistance line from late June, near $8.5860, will be important to watch.
Meanwhile, sustained weakness could direct USD/TRY prices to June’s low of $8.2775 before the late April’s swing low near $8.1300 gain the market’s attention.
Overall, USD/TRY remains bearish ahead of the Turkish CPI data but RSI conditions may help the countertrend traders if economics weaken the TRY.
USD/TRY: Daily chart
Trend: Bearish