• USD/TRY grinds higher around yearly top, extending the previous day’s rebound.
• Lower highs, Friday’s Doji probe bulls amid overbought RSI (14).
• Short-term rising channel, previous resistance line from January and 20-DMA test pullback moves.

USD/TRY holds onto the previous day’s recovery around the yearly top, sidelined near 17.20 during early Monday morning in Europe. In doing so, the Turkish lira (TRY) pair stays inside a bullish channel formation, established in early May.

However, overbought RSI conditions and Friday’s Doji hints at the pair’s pullback moves towards the stated channel’s support line, close to 16.90 by the press time.

It should be noted that the quote’s weakness past 16.90 won’t be an open invitation to the USD/TRY bears as the resistance-turned-support line from January joins 20-DMA to challenge the pair’s further declines around 16.49 and 16.43 in that order.

Meanwhile, the upper line of the stated channel, around 17.45, challenges the USD/TRY upside ahead of the yearly top surrounding 17.50.

Following that, the lifetime high marked during late 2021, around 18.35, will be in focus as it holds the key to the pair’s rally towards the 20.00 psychological magnet.

Overall, USD/TRY bulls seem to run out of steam and may take a breather.

USD/TRY: Daily chart

Trend: Pullback expected