USD/TRY strengthened sharply today, climbing to a new two-week high, around 5.3653, extending its run from the pullback on 5.1330. The bullish picture in the very short-term is further supported by the RSI, which is rising above the 50 level and the stochastic oscillator hovers in the overbought territory. Also, the price advances above the 20- and 40-simple moving averages (SMAs) in the 4-hour chart.
In the event of further upside reversal, the 5.4360 could act as a barrier before being able to re-challenge the 5.5270 level. A leg above this level would drive the pair until the 23.6% Fibonacci retracement level of the downward movement from 7.1083 to 5.1330, around 5.5970.
However, further losses should see the four-month low of 5.1330 acting as a major support level, recorded on December 3. A dive below this region would reinforce the bearish structure in the medium-term and open the way towards the next key support of 4.9800.
Turning to the medium-term picture, the market seems to be switching from a bearish mode to a more neutral to bullish one given that the price surpassed the moving averages.
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