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 maintained its stability near its highest levels ever, amid the Turkish Central Bank's continued shift in its monetary policy, as investors followed its latest decision to stop transferring foreign currency deposits to lira deposits that are protected from exchange rate fluctuations. According to the Central Bank statement, the decision aims to enhance financial stability, and the decision also aims to increase deposits in local currency. It is noteworthy that deposits protected from exchange rate fluctuations were approved at the end of 2021, which was intended to reassure depositors in lira, as they were compensated for the difference between the dollar exchange rate on the day of withdrawal and deposit, in addition to the interest rate set on the deposit.
The bank's decision comes within the framework of the shift in monetary policy in the country, which is led by a new economic team that has tightened monetary policy in the country, with the aim of controlling inflation, which returned to expansion during the month of July. The interest rate was raised during the last two meetings of the Central Bank of Turkey, and the country reduced its management of non-industrial gold in its attempt to reduce the current account deficit. In addition, the Ministry of Finance raised taxes on a wide range of goods and services in order to reduce the difference between large expenditures and imports.
USD/TRY Technical Analysis
On the technical level, the trading of the dollar pair against the Turkish lira stabilized without changes, as the pair traded in the same limited range around the levels of 27 liras per dollar, near its highest levels recorded nearly a month ago. The pair is currently trading mixed for the fifth week in a row. If the pair rises, it will target the resistance levels that are concentrated at 27.50 and 28.00, respectively, while 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, while the pair is trading between these averages on the four-hour time frame, as well as 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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