• USD/TRY pulls back from six-week high, pressured around intraday low of late.
• Monthly horizontal area limits immediate downside ahead of the key support line and SMAs.
• Bulls may aim for January’s top, RSI favors further upside.

USD/TRY consolidates recent gains around the highest levels last seen on January 10 during early Wednesday morning in Europe.

The Turkish lira (TRY) pair’s latest pullback takes clues from the overbought RSI, inside the normal 70-30 area by the press time. It’s worth noting that the bullish RSI divergence, is a case when a higher low in prices accompanies the higher low in the RSI line.

That said, the quote’s further weakness may aim for a horizontal region comprising multiple levels marked since January 18, near $13.68.

However, any further weakness will be challenged by the monthly support line, near $13.60.

Even if the USD/TRY bears manage to conquer the $13.60 support, 100-SMA and 200-SMA will challenge additional declines near $13.55.

Alternatively, recovery moves may initially aim for $13.80 before renewing the upside momentum targeting January’s top surrounding $13.95.

Should USD/TRY buyers keep reins past-$13.95, the $14.00 threshold may test the upside momentum before directing the bulls towards the high marked on December 21, 2021, around $14.13.

Overall, USD/TRY may print extra losses on intraday but the bears remain cautious until witnessing a clear downside break of the 200-SMA.

USD/TRY: Four-hour chart

Trend: Further recovery expected