• The asset is expected to pause around the upper boundary of the Rising Channel formation.
• A pullback towards the five-EMA could be a bargain buy for investors.
• The RSI (14) is displaying an extremely overbought situation.

The USD/TRY pair is oscillating in a narrow range of 15.92-15.98 from the New York session. Earlier, the pair has remained in the grip of bulls after breaching the prolonged consolidation formed in a range of 14.39-15.06. The greenback bulls are outperforming against the Turkish lira amid a broader strength in the former.

On a daily scale, the asset is auctioning in a Rising Channel chart formation. The upper trendline of the above-mentioned chart pattern is placed from January 3 high at 13.94 while the lower boundary is plotted from February 1 low at 13.27.

The 20- and 50-period Exponential Moving Averages (EMAs) at 15.28 and 14.86 respectively are scaling higher, which signals a continuation of the bullish momentum.

Meanwhile, the Relative Strength Index (RSI) (14) is oscillating in the 60.00-80.00 range, which indicates the strength of the greenback bulls. Most probably, the greenback bulls will remain stronger, however, the RSI (14) is displaying an extremely overbought situation, which could bring exhaustion to the rally.

A minor pullback in the asset towards the five-period EMA at 15.80 will activate a responsive buying action, which will drive the asset towards the Rising Channel upper boundary at 16.20. A breach of the latter will expose the asset to an upside of 20 December 2021 opening price at 16.60.

On the flip side, the greenback bulls could lose their grip if the asset drops below the 9 May low at 14.92. The occurrence of the same will drag the asset towards April 12 low at 14.55, followed by the psychological support at 14.00.

USD/TRY daily chart