The USD/TRY has been hit by a supreme amount of turbulence in the past day. As of this writing, recording price vicinity for the Forex pair feels adventurous because of the volatility. Yesterday’s trading of the USD/TRY saw a high over the 18.00000 juncture as analysts and reports spoke about the potential for the Turkish lira to lose more value.
As of this morning, the USD/TRY is trading under 12.00000, but please check your trading screens to look at the price to see if this matches current conditions as you read this article. The reason for the move lower is likely because President Erdogan has said he will protect the Turkish lira and guarantee Turkish depositors fair values for the money they hold. And if that sounds vague, it is because when all things are said and done, the statements issued from Erdogan may fall short of the promises made.
While this temporary boost in confidence was much needed, it remains to be seen if the pronouncements can actually provide a significant long-term reversal. Speculators who want to trade the USD/TRY need to be extremely careful. Traders may actually want to sit on the sideline and watch the USD/TRY trade over the next few days to see if they can make technical sense of the volatility. The movement of the USD/TRY is comparable to a cryptocurrency the past day.
If a trader is bold enough to step into the Forex arena and participate in the USD/TRY today, they should certainly use entry price orders. The USD/TRY did touch a low of nearly 11.15000 in early trading this morning. The USD/TRY does in fact look like a buy if you still do not believe President Erdogan is going to be able to fulfill his goals concerning economic interventions. If the public starts to seek proof of Erdogan’s rhetoric, this could begin to propel the USD/TRY higher again if doubts grow.
Warning: if you want to participate in the USD/TRY today and tomorrow you should expect volatility and you can lose all of your money wagered quickly. If you are brave enough to trade the USD/TRY and want to participate in this historic moment and find a broker willing to allow you to trade the pair, buying the USD/TRY on moves lower while looking for a reversal higher may be the logical bet. Stop loss, take profit orders are 100% needed to make sure trades function.
Turkish Lira Short-Term Outlook
Current Resistance: 13.55000
Current Support: 11.50000
High Target: 17.00000
Low Target: 10.25000
