USD/TRY Technical Analysis: Nears resistance at 5.9385

• USD/TRY is closing on key resistance, having witnessed a triangle breakout on Dec. 17.
• The daily RSI is reporting overbought conditions. 

USD/TRY is closing on the resistance at 5.9385 (Oct. 14 high), having closed higher for the fourth straight day on Wednesday. 

A break above 5.9385 is needed to establish a higher high and bolster the bullish setup represented by the contracting triangle breakout on the daily chart confirmed on Dec. 17 and the ascending 5- and 10-day averages. 

A close above 5.9385, if confirmed, will likely yield a sustained rise above 6.00. 

Indeed, the 14-day relative strength index (RSI) is reporting overbought conditions with an above-70 print. The price chart, however, is showing no signs of buyer exhaustion and the bullish case would be invalidated only below the rising 10-day MA, currently at 5.8350.

Daily chart

Trend: Bullish

Technical levels

Resistance: 5.9385, 6.00, 6.1516

Support: 5.8350, 5.7951, 5.6850