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TRY/USD Forecast: Stability of the Lira Against the Dollar after the Interest Rate Hike

Today's recommendation on the TRY/USD

The risk is 0.50%.

Best buying entry points

  • Entering a buy order pending order from the 18.50 level
  • Place a stop loss point to close below the 18.25 support level.
  • Move the stop loss to the entry area and follow the profit when the price moves by 50 pips.
  • Close half of the contracts with a profit equal to 70 pips and leave the rest of the contracts until the strong resistance level at 18.99.

Best-selling entry points

  • Entering a sell order pending order from the 18.99 level.
  • The best points to place a stop loss close to the highest level of 19.15.
  • Move the stop loss to the entry area and follow the profit when the price moves by 50 pips.
  • Close half of the contracts with a profit equal to 70 pips and leave the rest of the contracts until the 18.55 support level.

The price of the TRY/USD has stabilized despite the strong movement in global markets since yesterday, after the decision to raise interest rates in the United States of America by 50 basis points. Despite the rise of the dollar at the present time against major and emerging market currencies, especially after the statements of Federal Reserve Chairman Jerome Powell, who stressed adherence to a restrictive fiscal policy until inflation recedes.

 It seems that the Turkish Central Bank's control over the exchange rate of the lira has the most important factor now in the stability of the Turkish currency. It is supported by the Central Bank and is under the actual control of the executive authority of the country's president, Recep Tayyip Erdogan, who wants to support the lira out of his desire to spread a kind of economic stability that contributes to Exceeding the expected election period in the middle of next year.

It is noteworthy that the Central Bank of Turkey, despite pursuing a stimulus monetary policy, reality of the matter is that some of the procedures followed by the bank show a kind of tightening. For example, despite the reduction of the interest rate in the country during several past meetings, but the bank is tightening the borrowing policy that does not It is available to everyone. In light of the current control of the Central Bank of Turkey, the price of the lira is not expected to move significantly except by reducing the indirect intervention of the bank in the markets.

TRY/USD Technical Analysis

On the technical front, the dollar pair stabilized against the Turkish lira, with no significant changes during today's early trading. As the pair continued to trade within a limited range, which has been trading in its vicinity for more than two months. At the moment, the dollar pair settled against the lira, below the levels of 18.40 and 18.20, respectively. On the other hand, the pair is trading below the resistance level at 18.72, which is the highest recorded peak for the pair during the current year, as well as the pair is trading below the psychological resistance level at 19.00.

In the meantime, the dollar pair traded against the lira above the moving averages 50, 100, and 200 on the daily time frame, indicating the general bullish trend of the pair. The price traded between these averages on the four-hour time frame, as well as the lower time frames, in a sign of the divergence recorded by the pair. in the medium term. Any drop in the pair represents an opportunity to buy back again. Please adhere to the numbers in the recommendation, while maintaining capital management.

USD/TRY

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Amir Issa
About Amir Issa
Economic editor , more than 12 years experience in the global financial markets and in the field of currency and metals trading. I supervised on many sites related to investment, finance and training in the field of forex and global exchanges.
 

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