Today's recommendation on the lira against the dollar
- Risk 0.50%.
- The purchase transaction on Thursday was activated and a profit was exited with the transfer of the stop loss and the closure of half the contracts
Best buy entry points
- Entering a long position with a pending order from levels of 13.65
- Place your stop-loss point below the 13.33 support levels.
- Move the stop loss to the entry area and continue to profit as the price moves by 50 pips.
Close half of the contracts with a profit equal to 75 pips and leave the rest of the contracts until the strong resistance levels at 14.29.
Best selling entry points
- Entering a short position with a pending order from 14.10 levels.
- The best points to place the stop loss are above 14.39 levels.
- Move the stop loss to the entry area and continue to profit as the price moves by 50 pips.
Close half of the contracts with a profit equal to 75 pips and leave the rest of the contracts until the support levels 13.60
The lira opened the weekly trading on a decline, with the increase in demand for the dollar against the currencies of emerging economies. The Russian military escalation in the invasion of Ukraine, on the one hand, and the response of the European Union and the United States of America with economic sanctions targeting the Russian financial system and the energy sector, led to increased uncertainty in the markets and demand by investors for safe havens. On the domestic data front, reports published early showed that the Turkish economy grew by 11 percent over the past year, driven by the increase in exports, which recorded growth in the last quarter that exceeded expectations. This makes the countries that have recovered from the effects of the Corona pandemic the fastest growing in the G-20 countries during 2021.
On the technical level, the Turkish lira rose during the early trading to compensate for the losses that the market opened on, as the market opened on a price gap (GAP) to the top, the lira was able to rise to close this price gap before it fell again against the dollar. The chart of the Turkish lira against the dollar shows that the price traded at the highest support levels that are based at 13.66 and 13.42 levels. On the other side, the pair is trading below the resistance levels that are concentrated at 13.93, 14.10 and 14.34 (50 Fibonacci levels for the descending wave that started on 20 -12-2021 until 12-23-2021) respectively. The lira is also trading near the lower boundary of the ascending channel on the four-hour time frame, shown on the chart. We expect the lira to decline after reaching the lower boundary of the channel, as it targets the resistance levels on the other side. Please adhere to the numbers in the recommendation with the need to maintain capital management.
