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, trading near its highest levels ever. Positive reports continued about the Turkish economy, as the country’s general budget recorded a surplus during the month of July, turning positively at 48.6 billion liras after recording a deficit of 220 billion liras. This is despite recording a significant increase in the volume of spending. The tax increases approved by the government during the month of July boosted a wide range of major commodities, which raised the revenues of the Turkish government.
The country's national income recorded an increase in July on an annual basis by 156%, supported by the tax increase, the increase in the fuel price by about three times, and the increase in the value-added tax, which was increased by about two points, which is the increase that was approved on some consumer goods (some goods were registered 5 times its pre-tax value. At the same time, spending increased by a significant rate of 74.7% compared to the same month in 2022.
This was not the first positive shift in Turkey, after the current account recorded a surplus during the same month, as the government and the central bank's financial and monetary policies reflected positively on the country, after implementing a traditional fiscal policy led by the new economic team in the country. The country suffered from an increase in spending through the electoral promises made by the Turkish President prior to his re-election last May, in conjunction with an increase in spending in the areas being reconstructed in the south of the country, which were hit by the devastating earthquake last February.
TRY/USD Technical Analysis
On the technical front, the USD/TRY has stabilized without significant changes, stability in the same limited trading range, as the pair is trading near its highest levels recorded during the past weeks, around levels of 27 lira per dollar, the pair is currently trading in a mixed manner for the fourth 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.
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