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Today's recommendation on the TRY/USD
The risk is 0.50%.
Best buying entry points
- Entering a buy order pending order from the 21.00 level.
- Place a stop loss point to close below the 20.89 levels.
- 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 21.50.
Best-selling entry points
- Entering a sell order pending order from the 21.50 level.
- The best points to place a stop loss close the highest level of 21.65.
- 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 support levels 21.25
The TRY/USD opened the weekly trading with more losses after data revealed that the trade deficit in Turkey increased by 18.8 percent over the past month, on an annual basis, to reach $12.66 billion. The trade deficit increased by 30% during the first five months of this year, reaching $56 billion. On the political and financial front, the Turkish president announced last Saturday the formation of his new government, which included the appointment of a new finance minister, who previously held the ministry until 2018. Mehmet Simsik is distinguished as a follower of the traditional economic theory that runs contrary to the theory followed by the Turkish president.
In this regard, investors followed the statements of the Minister of Finance on Sunday, in which he said that there is no longer any option but to return to a rational policy, and added that the ministry's goal at the present time is to support the Central Bank to control inflation by implementing some structural reforms. Finally, Simsek said that compliance The international standards will be the basis for achieving the goal. It is noteworthy that some reports prior to the Turkish elections mentioned the possibility of the Turkish president's coup against his unconventional monetary policy after the elections, which the Turkish president denied in multiple statements.
TRY/USD Technical Analysis
On the technical front, the dollar pair against the Turkish lira maintained its gains, as the pair recorded a new all-time high during early trading this morning, as the pair reached 21.22 levels, the pair is approaching 21.50 levels for each dollar. The general trend of the US dollar against the lira continued, which accelerated before the start of the elections and increased after the second round. The lira is under great pressure in light of the adopted monetary policy, as it hardly records any significant correction.
At the same time, the pair is trading above the support levels, which are concentrated at 21.00 and 20.90, respectively. The price also settles below the resistance levels that are concentrated at 21.22 and 21.50. 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. Even announcing the expected changes in monetary policy, any fall in the dollar against the lira represents an opportunity to buy back again. Please adhere to the figures in the recommendation, while maintaining capital management.
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