The USD/TRY exchange rate has been trading upwards since the beginning of August when it reversed north from the lower boundary of the medium-term descending channel at 5.4713.
Currently, the currency pair is testing the upper channel line at the 5.8435 mark. From a theoretical perspective, it is likely that a reversal south could occur in the nearest future, and the pair could target the lower trend line located in the 5.3500/5.4000 range.
However, note that the rate is supported by the 55-, 100– and 200-hour SMAs, currently located in the 5.7883/5.8295 range. Thus, if the given channel does not hold, some upside potential still could prevail in the market. In this case the pair would have to surpass the monthly R2 at 5.9029.