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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 Turkish Lira stabilized against the US dollar during early trading on Thursday morning. Investors followed a new update to the expectations of the American investment bank JP Morgan, which raised its previous expectations regarding the Turkish interest rate during the current year, as the latest report by the bank’s analysts indicated the possibility of raising interest rates during the current month and next month by 5%, or the equivalent of 250 basis points each. Month.
The report attributed these expectations to the strict tone shown by the bank in its last meeting at the end of last October, especially with the Monetary Policy Committee’s insistence on continuing monetary tightening gradually until the necessary limit is reached. The bank's analysts' previous expectations included that interest rates in Turkey would reach 35% by the end of this year, while that was the rate that the bank had actually reached during last month's meeting. Turkey is suffering from a rise in inflation coinciding with a decline in the value of the local currency. Despite the improvement in some economic numbers as a result of the shift in monetary policy, expectations indicate that inflation will begin to decline starting from the second half of next year.
In other news, Turkey's new economic team seeks to remove its country's name from the gray list in which countries are included that have not taken adequate measures to prevent money laundering, by preparing legislation that regulates crypto-assets. Finance Minister Mehmet Simsek said that his government will present this legislation to Parliament as soon as possible.
TRY/USD Technical Analysis
On the technical level, the dollar pair against the Turkish lira stabilized during European trading this morning near its highest level ever. The pair approached the levels of 28.50 liras per dollar, as 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 28.75 and 29.00, 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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