• USD/TRY grinds higher around weekly top inside bullish chart pattern.
• Overbought RSI questions sustained trading beyond monthly support line to probe buyers.
• Convergence of 20-DMA, pennant’s support restricts short-term downside.

USD/TRY remains on the front foot around $9.7420, extending the previous day’s rebound from the monthly support during early Wednesday.

In doing so, the Turkish Lira (TRY) pair pokes the resistance line of a short-term bullish pennant. However, overbought RSI conditions test the pair buyers.

Hence, a pullback towards the October-end peak surrounding $9.6300 can be expected on the break of the immediate support line near $9.7220.

Though, a confluence of 20-DMA and the stated pennant’s support line will restrict the quote’s further weakness around $9.5270. In a case where USD/TRY drops below $9.5270, the October 19 peak of $9.3765 will be in focus.

Alternatively, a clear upside break of the $9.7450 immediate hurdle will confirm the bullish formation, directing the quote towards refreshing the record top of $9.8505. During the run-up, the $9.9000 psychological magnet may act as an intermediate halt.

USD/TRY: Daily chart

Trend: Further upside expected