Today's recommendation on the TRY/USD
Risk 0.50%.
Best buying entry points
- Entering a buy deal with a pending order from the 28.15 level.
- Place a stop loss closing point below the 28.00 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 28.50.
Best-selling entry points
- Entering a sell deal with a pending order from the 45.28 level.
- The best points to place a stop loss are closing the highest level of 28.55.
- 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 28.20.
The price of the TRY/USD during early trading on Tuesday morning, as the Turkish currency recorded its lowest level ever against the US dollar during Asian trading, after the pair recorded levels of 28.45 liras per dollar before the lira compensated for some of its early losses. The lira was not positively affected by the increase in interest rates in the country last week, as the central bank raised the interest rate by 500 basis points, bringing the main interest rate in Turkey to 35 percent. The decline of the Turkish currency came considering indications from some international banks that the price of the lira was approaching its minimum, amid hints of a shift to buying the lira in the near term.
Meanwhile, data issued by the Turkish Central Bank revealed that the interest rate applied to deposits in the Turkish lira during the third week of October was 37.45 percent, recording a decline of 45 basis points compared to the second week. At the same time, interest on dollar deposits decreased by about 4 basis points, reaching 2.78 percent, while interest on euro deposits increased by about 3 basis points, reaching 1.16 percent. Finally, data revealed a decline in interest on commercial loans denominated in the lira by about 168 basis points compared to the second week, reaching 48.02 percent.
TRY/USD Technical Analysis
On the technical level, the dollar pair rose against the Turkish lira, recording its highest level ever during early trading this morning. Where the pair recorded levels of 28.45. The pair maintained its movements within an ascending price channel in 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 28.10 and 27.90, 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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