Today's recommendation on the lira against the dollar
The risk is 0.50%.
Best buy entry points
- Entering a buy order pending order from 25.50 levels
- 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 26.00 levels.
- The best points to place a stop loss close the highest levels 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 support levels 25.50.
Analysis of the Turkish Lira
The price of the Turkish lira stabilized without major changes against the US dollar during early trading this morning. The pair settled in a limited trading range, near its highest levels in nearly two weeks.
Investors followed a statement issued by the Central Bank of Turkey on Tuesday, in which it revealed an increase in the deficit in Turkey's current account balance during the month of May, to reach $7.9 billion, compared to about $5.4 billion registered during the month of April. It is noteworthy that the current account deficit reached $48.7 billion last year. In other data issued by the Automotive Exporters Union, the volume of Turkish car exports during the first half of this year amounted to about $5.4 billion, accounting for 16 percent of the country's total exports. The return from those exports increased by 19.7% compared to last year. It is noteworthy that Turkey suffers from a large trade deficit between the volume of exports and imports, which contributed to the expansion of the country's economic decline.
Technical Outlook
Price of the dollar stabilized against the Turkish lira during early trading this morning, as the pair traded near its highest levels ever. The pair is currently trading within a rectangular range defined within a general bullish trend, which showed a slowdown recently.
Currently, the pair is trading around 26.10 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.
Ready to trade our daily Forex forecast? Here’s a list of some of the best regulated forex brokers to check out.
