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 level at 29.15
- 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 dollar pair rose against the Turkish lira during early trading on Wednesday, as the pair recorded its highest levels ever above 29.15 levels.Investors followed Morgan Stanley's expectations about the Turkish Central Bank's decision to increase interest rates by 250 basis points at its last meeting of 2023, scheduled for this week. The bank's analysts attributed the awaited interest decision in response to the currently high inflation rate, which stands at around 62%. The financial institution also expects an additional hike of 250 basis points in January 2024. Despite expectations that this week's meeting may mark the end of the ongoing tightening cycle, the possibility of future interest rate hikes cannot be ruled out. Morgan Stanley analysts also expect annual inflation in Turkey to reach a high of 71.6% in May and then decline to 42.3% by December 2024.
The Turkish Central Bank, which usually takes decisions to raise interest rates at relatively large rates to control inflation levels and work to stabilize prices, will meet next Thursday.
TRY/USD Technical Analysis
On the technical level, the dollar pair rose against the lira during early trading this morning, as it breached the price range in which it had moved over the past week, after the pair broke its all-time highs that served as strong resistance levels at 29.05, as the lira recorded its lowest levels ever against the dollar. At 29.16 hours writing the report.
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. If the pair rises, it targets the resistance levels, which are concentrated at the 29.20 and 29.25 levels, respectively, while on the other hand, if the pair declines, it targets the 28.90 and 28.75 levels, 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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