Today's recommendation on the TRY/USD
The risk is 0.50%.
Best buying entry points
- Entering a buy order pending order from the 26.50 level.
- Place a stop loss point to close below the 26.25 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 27.50.
Best-selling entry points
- Entering a sell order pending order from the 27.50 level.
- The best points to place a stop loss close to the highest level of 27.65.
- 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 the support level at 26.50.
The USD/TRY stabilized, near its highest level ever, during early trading on Thursday morning. Investors are awaiting the meeting of the Central Bank of Turkey today when it is scheduled to announce a new increase in interest rates in the country. Previous expectations indicated that the interest rate would be raised today between 300 and 350 basis points, compared to the rate hike during the previous meeting in June by 650 basis points.
It is a lower percentage than expected, which caused a negative impact on the price of the lira. It is noteworthy that the new economic team appointed by the Turkish president faces more challenges that stand in the way of the tightening monetary policy pursued by the Central Bank at the present time, such as the high liquidity of the lira, as well as the widening interest rate gap between deposits in banks and interest on lending in Turkish banks.
In other news, Turkish President Recep Tayyip Erdogan seeks to attract more foreign investments, particularly from the Arab Gulf countries - which he is currently visiting - to his country in light of the decline in the number of cash reserves that the country suffers from. As it was reported that the Turkish President and the President of the United Arab Emirates, Mohammed bin Zayed, signed, on Wednesday, a set of agreements worth $ 50 billion. "With the joint agreement he signed, we will raise our relations to the level of strategic partnership," Erdogan said in remarks broadcast on Turkish state television.
TRY/USD Technical Analysis
On the technical front, the dollar pair stabilized against the Turkish lira during early trading this morning, as the pair traded slight declines below 27 levels, which is its new highest level ever, which it recorded during yesterday's trading. The pair has now breached the rectangle range that settled inside it for about two weeks, to return to trading within a general bullish trend, while trading less than other resistance areas concentrated between the levels of 27.12 and 27.50, and the pair is trading above the support levels that are concentrated at 26.26 and 26.00. respectively.
The price is moving above the 50, 100, and 200 moving averages on the daily timeframe, as well as on the 4-hour and 60-minute timeframes, in a sign of the strong bullish general trend. It is expected that the impact of the tightening by the Turkish Central Bank on the price of the lira, which analysts estimated to be around 29 liras per dollar, is expected to be delayed. Please adhere to the figures in the recommendation, while maintaining capital management.
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