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 the 25.25 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 remaining contracts until the strong resistance level 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 TRY/USD maintained its stability after inflation data for the month of June and amid reports of the return of support by state banks in Turkey to the price of the lira. In the details of the data, a report issued by the Turkish Statistical Institute, which included inflation figures in the country, revealed that the annual inflation had declined on an annual basis during the month of June, as it recorded a rate of 38.21% compared to the reading of last May, which was at 39.59%. It is mentioned that the inflation rate has declined slightly below market expectations.
On a monthly basis, the consumer price index recorded an increase during the month of June 3.92%, as increases in the prices of hotels, cafes, and restaurants led the increases, after recording a jump to 67.22%, on an annual basis, while the increases in growth in the housing category were the least among the components of the index. It also recorded an increase of 14.76% on an annual basis. Despite the slight improvement in inflation figures, they are far from the target of the Central Bank of Turkey at 5%. It is noteworthy that the country is witnessing a shift in fiscal and monetary policy, with interest rates raised and the central bank retreating from intervention in the markets strongly, as there were reports of government banks returning to pump more foreign currencies after the Eid al-Adha holidays amid increased demand for foreign currencies.
USD/TRY Technical Analysis
On the technical front, without major changes, the price of the dollar against the Turkish lira recorded stability during early trading this morning, as the pair traded near its highest levels ever. The pair is currently trading within a rectangular range defined by a general bullish trend, which showed a slowdown recently.
Currently, the pair is trading around the 26.05 level, 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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