Today's recommendation on the TRY/USD
The risk is 0.50%.
Best Buy entry points
- Entering a buy order pending order from the 23.00 level.
- Place a stop loss point to close below the 22.80 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 23.50.
Best-selling entry points
- Entering a sell order pending order from the 24.00 level.
- The best points for placing a stop loss close to the highest level of 24.15.
- 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 support level at 23.50
The TRY/USD maintained its stability during trading today, Wednesday, a day before the Central Bank's expected decision on interest rates. The Turkish currency had recorded record levels of decline against its American counterpart over the past weeks, as the pace of decline escalated before settling at current levels for the second week in a row before the expected interest rate decision tomorrow. Meanwhile, expectations of high inflation in the country expanded after the Turkish government raised the minimum wage for the second time in a few months, as the country's Minister of Labor announced a plan according to which the net minimum wage would be raised by 34% to reach 11,402 liras per month, starting from the month. current. This may raise the purchasing power of a large group of workers in the country, which may reflect negatively on inflation with increased demand.
Expectations of rising inflation come at a time when the Turkish president pledged to reduce inflation levels to single digits, as he appointed a new economic team that follows the traditional approach in the economy and is based on raising interest rates to control inflation. It is noteworthy that inflation in the country ranges around 40%, as it fell from the record levels recorded during October of last year after it recorded levels of 85%.
TRY/USD Technical Analysis
On the technical front, without changes, the dollar pair stabilized against the Turkish lira during early trading this morning, to stop the pair after a wave of strong rise that lasted for nearly a month, during which the dollar pair recorded new highs on a daily basis. Currently, the pair is trading around 23.57 levels since the middle of last week's trading, as the price is trading above the support levels that are concentrated at 23.50 and 23.00, respectively.
The price also settles below the resistance levels that are concentrated at 24.00 and 24.50. The price is moving above the moving averages 50, 100, and 200 on the daily timeframe, as well as on the 4-hour and 60-minute timeframes, in a sign of the strong bullish general trend.
Until the announcement of the expected changes in monetary policy, caution may be the master of the situation, with the pair's gains momentum declining, as it is expected to record stability until the next central bank meeting. Please adhere to the figures in the recommendation, while maintaining capital management.
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