Today's recommendation on the USD/TRY
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 25.28 level.
- 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 varied against the US dollar during early trading on Wednesday morning, as the Turkish currency stabilized near its lowest level ever against the US dollar. Investors are awaiting tomorrow's interest rate decision amid the absence of influential economic data. Estimates indicate that interest rates will rise between 2.5 percent and 5 percent.
Meanwhile, investors followed the statements of Mehmet Simsek, the Turkish Minister of Finance, who said that his country had made a shift in monetary policy, and that he attributed the change in monetary policy in Turkey to his country's need to control inflation.
The minister also indicated that the level of debt in Turkey is low at the present time, which provides the possibility of covering other expenses, such as rebuilding what was destroyed by the earthquakes that struck the south of the country last February. They also pointed to the increase in the current account deficit despite the increase in tourism revenues due to the increase in strong domestic demand, as well as the increase in the country’s imports of gold.
Simsek gave an optimistic outlook about the renewed interest of foreign investors in his country, as he expected financing opportunities from abroad during the coming period.
In this regard, Vice President of the Republic Cevdet Yilmaz commented that the government program that was announced last month is a medium-term program that includes measures to improve the investment environment in the country.
USD/TRY Technical Analysis
On the technical level, the dollar pair against the Turkish lira stabilized near its highest level ever during early trading this morning. The pair is trading around 28.12 levels, after breaching the correct figure of 28.00 during last week’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 28.25 and 28.50, respectively, while if the pair declines, it targets the support levels concentrated at 27.75 and 27.50, 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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