USD/TRY Technical Analysis: Pennant pattern could allow for further upside

• After three consecutive daily pullbacks, the Turkish Lira is now regaining some interest and dragging USD/TRY to fresh 2-day lows around 6.25.
• The likelihood of a pennant formation in the daily chart could allow for extra gains in the near-to-medium term.
• In case the upside momentum gathers extra steam, 6.5653 (high September 13) should be the immediate target seconded by 6.8350 (high August 30), all preceding the all-time high at 7.2393 recorded in mid-August.
• The probability of extra gains is reinforced as long as spot trades above the daily cloud.

USD/TRY daily chart

Daily high: 6.4203

Daily low: 6.2400

Support Levels

S1: 5.9820

S2: 5.6675

S3: 5.5928

Resistance Levels

R1: 6.5653

R2: 6.8350

R3: 7.2393