Today's recommendation on the TRY/USD
Risk 0.50%.
Best buying entry points
- Entering a buy deal with a pending order from the 28.90 level.
- Place a stop loss closing point below the support level at 28.70.
- 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 29.15.
Best-selling entry points
- Entering a sell deal with a pending order from the 29.10 level
- The best points to place a stop loss are closing the highest levels of 29.25.
- 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 28.85.
The USD/TRY stabilized during early trading on Wednesday morning, as the price moved near its highest levels ever. Despite the positive data issued by Turkey, which indicates a positive shift in economic numbers, negative expectations of the movements of the Turkish lira against the dollar during the coming year continued from some global institutions.
In this regard, Barclays expects the value of the Turkish lira to depreciate against the US dollar in 2024, due to the expected rise in the policy rate of the Central Bank of the Republic of Turkey (CBRT) and global risk appetite. The bank expects the dollar/lira exchange rate to rise from 29 at the end of 2023 to 39 in September 20241. This is in line with other forecasts that expect a sharp decline in the value of the Turkish lira in the near future. In detail, a report included the bank’s analysts’ expectations that the Turkish lira would decline during the first quarter of next year to reach levels of 33.20 against the dollar, with the pace of the lira’s declines increasing to reach levels of 37 lira per dollar by the end of the second quarter, before its losses expand to reach 41 lira per dollar. dollars during the third quarter, before 2024 trading concludes at levels of 43.80 liras per dollar.
TRY/USD Technical Analysis
On the technical level, the lira pair against the dollar did not witness major changes during Wednesday’s trading, as the pair stabilized at the same range it has been trading at since the beginning of the week, near its highest levels ever at 29.05 levels. On the large time frame, the price moves within an ascending price channel on today's time frame, reflecting the strong general upward trend that the pair has been following over the course of several months. While the pair has recently recorded a slowdown, with the price entering another ascending price channel, but it is less severe.
If the pair rises, it targets the resistance levels, which are concentrated at the levels of 29.15 and 29.25, respectively, while on the other hand, if the pair declines, it targets the levels of 28.90 and 28.75, respectively. The pair is trading above the 50 and 200 moving averages respectively on the day time frame, as well as on the 4-hour time frame in a reflection of buyers' control over the price. The pair is expected to continue its general upward trend as long as it stabilizes within the borders of the mentioned price channels. Please adhere to the mentioned recommendation points and maintain capital management.
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