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 level 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 the early trading of the weekly trading, as it traded near its highest levels ever. Turkish Central Bank Governor Ghaya Arkan's statements continued, which focused on the problem of high rental prices as one of the elements of high inflation in her country. The Central Bank Governor also said that Turkey needs more time to solve this problem. The pillars of this problem are attributed to the lack of what can be called social housing - state-owned housing designated for low-income people who find it difficult to find housing - as the housing units allocated for rent in the country belong to the private sector in their entirety.
In this regard, Erkan added that President Erdogan and his deputy are following this issue with interest. Arkan also stated regarding monetary policy, saying that the monetary tightening policy must be maintained for a longer period. It also expected a slowdown in price increases in services such as transportation and food by the end of 2024, with a slowdown in rental and education expenses.
In other news, the Turkish Central Bank announced an increase in the bank’s total gold and foreign exchange reserves during 2023, recording about 141.374 billion dollars at the beginning of this December, compared to about 127.139 billion last January.
TRY/USD Technical Analysis
On the technical level, the lira pair against the dollar stabilized at the same price range in which it moved over the past week, as the price moved near its highest level ever at 29.05 levels, which represents a strong support level that the price has not been able to penetrate since the end of last week.
On the larger time frame, the price moves within an ascending price channel in today's time frame, reflecting the strong general upward trend that the pair has been following over several months. While the pair has recently recorded a slowdown, with the price entering another ascending price channel, it is less severe, as the price was unable to significantly penetrate the 29.10 levels over the current month.
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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