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USD/TRY made a new all-time high despite negative RSI divergence on the daily chart. Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank, expects the pair to extend the rally towards the 9.00 psychological level.

USD/TRY rallied to 8.6165 in May

“USD/TRY has so far rallied to 8.6165, a new all-time high (according to CQG data), despite it being accompanied by negative divergence on the daily RSI.”

“Were the current rally to continue, and we would expect it to as long as the cross remains above the 8.2965 mid-May low, we would have to allow for the 8.7218/8.82 TD resistance and psychological resistance at 9.0000. There is scope for a daily 0.1 x 3 vertical Point & Figure target at 9.1000 to be reached.”

“Minor support sits at the March and April highs at 8.4869/8.4605.”  

“Support below the 8.2965 mid-May low is seen at the late November and December highs and April low at 8.0530/7.9775. Further down lies the March 8 high at 7.7881. Below it the March 17 high and March 23 low can be spotted at 7.6923/7.6413 and the November low and January high can be seen at 7.5439/7.5195″.