Today's recommendation on the TRY/USD
The risk is 0.50%.
Best buying entry points
- Entering a buy order pending order from the 25.50 level.
- Place a stop loss point to close below 25.25 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 remaining contracts until the strong resistance levels at 26.00.
Best-selling entry points
- Entering a sell order pending order from the 26.00 level.
- The best points to place a stop loss close to the highest level of 26.15.
- 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 25.50 support level.
The Turkish lira maintained its stability against the US dollar, amid reports of the return of government banks' support in Turkey for the price of the lira, amid fears of further declines in the currency's price. Previous reports had shown that the new Turkish Finance Minister, Mehmet Simsek, asked the central bank to stop supporting the Turkish lira, leaving the currency price to be determined by supply and demand in the market, as the value of the Turkish lira declined by about 28% during the current year.
The declines in the last month alone had exceeded 10 percent. Reports indicated an increase in the demand for foreign currency after the end of the Eid Al-Adha holidays, which prompted government banks to pump nearly a billion dollars during Monday's trading in the markets, amid fears of another wave of declines in the Turkish lira. The cessation of the injection of foreign currency into the market had a positive effect on the size of the cash reserves of the Central Bank of Turkey, which announced an increase in its net foreign exchange reserves to reach 9.19 billion dollars during the week ending on June 23, which is the largest weekly increase after the net reserves reached -5.7 billion dollars at the beginning of last month.
TRY/USD Technical Analysis
On the technical front, without changes, the price of the dollar against the Turkish lira recorded stability during early trading this morning, as the pair recorded slight changes near its all-time highs. Whereas, the pair is trading within a limited range in a general bullish trend, which has shown a slowdown recently. Currently, the pair is trading around 26.05 levels, above the support levels that are concentrated at 26.00 and 25.50, respectively. The price also settles below the resistance levels that are concentrated at 26.50 and 27.00.
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. The effect of the tightening by the Turkish Central Bank on the lira price, which is expected to record some stability at the present time, is expected to be delayed. Please adhere to the figures in the recommendation, while maintaining capital management.
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