© Dukascopy Bank SA
After a rapid advancement in the second part of December USD/TRY encountered a strong resistance level at 2.1961, which still continues to cap the currency pair. At the same time every recent attempt of the dip to extend was successfully prevented by 2.1594, meaning that the currency pair is currently trading in a rectangle pattern.
Given the bullish behaviour of the U.S. Dollar prior to entering this horizontal corridor and the fact that most of the daily technical studies imply a rally, the nearest resistance is under a substantial risk of being breached, which should entail a test of the weekly R2 at 2.2120.
© Dukascopy Bank SA