USD/TRY Price Analysis: Further upside hinges on clear break of $16.40

• USD/TRY struggles to extend Friday’s rebound, remains sidelined near weekly horizontal resistance.
• Receding bearish bias of MACD signals, upbeat RSI favors buyers to aim for three-week-old resistance.
• 50-SMA, short-term bullish channel test bears during the pullback.

USD/TRY bulls attack a one-week-old horizontal resistance around $16.40, trading around the yearly low marked the last week.

That said, the Turkish lira (TRY) pair remains on the bull’s radar due to Friday’s recovery moves, as well as a three-week-old bullish channel formation.

Also keeping USD/TRY buyers hopeful are the recently easing bearish MACD signals and firmer RSI (14), not to forget the quote’s ability to stay firmer beyond 50-SMA.

However, a clear upside break of the $16.40 hurdle becomes necessary for the pair bulls to aim for the upper line of a short-term rising channel, around $16.70 by the press time.

Following that, the $17.00 and December 2021 peak surrounding $18.35 will be in focus.

Meanwhile, pullback moves may initially aim for the 50-SMA level of $16.15 before challenging the bullish chart pattern’s support line, near $16.10 at the latest.

Should the quote drop below $16.10, the USD/TRY bears may aim for the monthly low near $14.70. Though, the previous week’s swing low near $15.68 can offer an intermediate halt during the fall.

USD/TRY: Four-hour chart

Trend: Further upside expected