• USD/TRY grinds higher around yearly top despite the previous day’s bearish candlestick, overbought RSI.
• Monthly resistance line also challenges buyers targeting 2021 peak.
• 10-DMA restricts immediate downside ahead of the resistance-turned-support from June.

USD/TRY regains upside momentum, after Friday’s failed attempt, as buyers poke 17.95 mark during early Monday morning in Europe.

In doing so, the Turkish lira (TRY) pair ignores the previous day’s Doji, bearish candlestick, as well as the overbought RSI conditions.

However, an upward sloping resistance line from early July, around 18.10 by the press time, appears to challenge the USD/TRY bulls.

Even if the quote rises past 18.10, the previous yearly peak surrounding 18.35-40 will act as an additional upside filter before directing buyers towards refreshing the all-time high, preferably around the 20.00 psychological magnet.

Meanwhile, pullback moves may initially aim for the 10-DMA level surrounding 17.80 ahead of highlighting June’s peak near 17.50.

During the quote’s weakness past 17.50, the two-month-old previous resistance line, around 17.10 by the press time, will be important to watch as a downside break of 17.10 could convince sellers to retake controls.

Overall, USD/TRY bulls are likely to find multiple hurdles during their further dominance.

USD/TRY: Daily chart

Trend: Limited upside expected