Today's recommendation on the TRY/USD
Risk 0.50%.
Best buying entry points
- Entering a buy deal with a pending order from the 27.75 level.
- Place a stop loss closing point below the 27.55 level.
- Move the stop loss to the entry area and follow the profit as the price moves by 50 points.
- Close half of the contracts with a profit equal to 70 points and leave the rest of the contracts until the strong resistance level at 28.00.
Best-selling entry points
- Entering a sell deal with a pending order from the level at 25.28.
- The best points to place a stop loss are closing the highest level of 28.39.
- Move the stop loss to the entry area and follow the profit as the price moves by 50 points.
- Close half of the contracts with a profit equal to 70 points and leave the rest of the contracts until the support level of 27.90.
The price of the lira stabilized against the US dollar during early trading on Monday morning, with the pair trading near its highest levels ever. Investors followed the decision of the Monetary Policy Committee of the Turkish Central Bank issued last Thursday, which decided to raise the interest rate by 5 percent, bringing the interest rate in Turkey to 35 percent. As the Turkish Central Bank continued to tighten monetary policy within the framework of the transformation that the bank is witnessing with the new economic team taking over following the country’s presidential elections, where the interest rate was raised by 27.5 percent within several months, as part of the efforts made to curb inflation, which reached 60 per cent.
The tightening of monetary policy in Turkey was welcomed by international institutions with a relative change in the outlook for the Turkish economy, as well as expectations for the Turkish lira, which witnessed a relative improvement, as a report by JP Morgan analysts revealed expectations of a rise in the Turkish lira, amid expected government support in light of its desire. In combating inflation, which is estimated to rise further if the lira declines.
Meanwhile, Turkish Finance Minister Mehmet Simsik announced new support packages for exporters, guaranteed by the treasury, which aim to increase production and exports. The new package expands the scope of financing for commercial institutions in the country, especially export-related sectors. According to statements by the Turkish Minister of Finance, the amount of support available reaches 30 billion Turkish liras.
TRY/USD Technical Analysis
On the technical level, the dollar pair against the Turkish lira stabilized near its highest level ever, recorded during last week’s trading. The pair traded at 2430 level, after breaching the correct figure of 28.00 during this month’s trading. The pair maintained its movements within an ascending price channel on the 240-minute time frame shown in the chart.
Currently, if the pair goes up, it targets the resistance levels concentrated at 28.50 and 28.75, respectively, while if the pair declines, it targets the support levels concentrated at 27.99 and 27.70, respectively.
The price is moving above the 50 and 200 moving averages on the daily time frame, as well as on the four-hour time frame, indicating the control of buyers and the general upward trend recorded by the pair. The pair is expected to record gains as long as it settles within the ascending price channel range. Please adhere to the numbers in the recommendation, while maintaining capital management.
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