USD/TRY Price Analysis: Jumps all time high above 8.8020, bulls hold grip

• USD/TRY consolidates gains on Friday after the previous session’s madness.
• Pair hit an all time high above 8.8020 after the Central Bank of the Republic of Turkey surprised with a 100-bps rate cut on Thursday.
• Overbought MACD caution on aggressive bids.

USD/TRY remains muted in the early European trading hours on Friday. The cross-currency pair peaked at all time after the CBRT surprised rate cut spooked traders and raised doubts over the credibility as monetary independence has lost. The pair confide in a very narrow trade band with no meaningful traction.

At the time of writing, USD/TRY is trading at 8.7712, up 0.03% for the day.

USD/TRY daily chart

On the daily chart, the USD/TRY cross-currency pair has been in the upside momentum since the beginning of the September series. The pair consolidated near 8.2660 for the consecutive four sessions beginning from September 2. USD/TRY remains in continuous uptrend putting the paddle on the accelerator.

The formation of a Doji candlestick suggests indecisiviness among traders. If price sustained below the intraday low, it could return to the 8.7500 horizontal support level. The Moving Average Convergence Divergence (MACD) holds onto the overbought zone. Any downtick in the MACD would intensify the selling pressure toward the 8.7000 horizontal support level followed by the previous day's low of 8.6265.

Alternatively, if price reverses direction, it could first test the YTD high at 8.8022, then it would  further march toward the psychological 8.8050 and 9.0000 mark respectively.