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 levels 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 US dollar pair stabilized against the lira, trading near new all-time highs. The Central Bank of Turkey revealed that total reserves rose from $98.5 billion recorded at the end of last May, to reach $115.6 billion during this August. In this regard, Turkish Finance Minister Mehmet Simsek commented on the increase in net reserves during the same period, by an estimated $20.1 billion, to reach $15.7 billion.
In other data, issued at the end of last week, the current account in Turkey recorded a surplus of $ 674 million during the month of June, for the first time since October of 2021. The measures taken by the Turkish Central Bank, which worked to reduce demand, and the shift in The country's monetary policy has led to a tightening monetary policy through which it has raised interest rates over the past two months. In conjunction with the boom in the tourism sector, which recorded a great recovery, the cost of energy imports also fell. Despite the optimistic data, the country continues to suffer from significant inflation rates with annual inflation rising close to 50%, and projections indicate that it is likely to continue until the end of this year.
Inflation fears caused an increase in citizens' desire to buy gold, as well as an expansion in the purchase of stock markets. In this regard, the Istanbul Stock Exchange index recorded during last week's closing on Friday, the highest daily and weekly closing ever, by 7714.38 points.
TRY/USD Technical Analysis
On the technical front, the TRY/USD settled in the same limited trading range near its highest levels recorded during the past weeks, with the pair's stability around levels of 27 lira per dollar. The pair is currently trading mixed for the third week in a row. If the pair rises, it will target the resistance levels that are concentrated at 27.50 and 28.00, respectively, but if the pair declines, it will target the support levels that are concentrated at 26.50 and 26.00, respectively.
The price is moving above the moving averages 50, 100, and 200 on the daily time frame, as well as on the four-hour time frame, while the pair is trading between these moving averages on the 60-minute time frame in a sign of divergence in the short term. The Turkish currency is expected to record some decline, especially if the pair breaks the upper border of the rectangle that the pair is trading inside. 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.