USDTRY has gone through the roof lately, breaking record high after record high. The pair has gone parabolic this week, with the price currently trading much higher than its upper Bollinger band and still rising.

Momentum oscillators are completely overwhelmed. The RSI is already above 90, miles beyond the ‘overbought’ region of 70. The MACD has skyrocketed as well. Both detect accelerating upside momentum.

In this environment, it’s difficult to say where resistance may be found. There hasn’t been any meaningful correction lately, so Fibonacci extensions aren’t very useful. Instead, sell orders might be found near psychological round numbers. The pair is currently trading near 10.62, so the next region to offer resistance may be around 10.70. If that’s breached too, the focus would turn towards 10.80 next.

Now if technical exhaustion kicks in and the pair corrects lower, the pullback could also be quite violent. The first major area to provide support may be near 9.84, which was a previous all-time high. If sellers manage to pierce below that, the 20-day moving average (MA) currently at 9.74 could come into the spotlight, ahead of the 9.46 zone.

Summarizing, the rally is overextended by almost every metric, but that doesn’t mean much. If buyers keep going, the real battle may be fought around the psychological 11.00 region.