Today's recommendation on the USD/TRY
- Risk 0.50%.
- None of the buy or sell transactions took place in the past week
Best buying entry points
- Entering a buy position with a pending order from the 18.16 level.
- Set a stop-loss point to close below the 17.95 support level.
- Move the stop loss to the entry area and continue to profit as the price moves by 50 pips.
- Close half of the contracts with a profit equal to 70 pips and leave the rest of the contracts until the18.31 strong resistance level.
Best selling entry points
- Entering a sell position with a pending order from the 18.32 level.
- The best points for setting stop-loss are closing the 18.55 highest levels.
- Move the stop loss to the entry area and continue to profit as the price moves by 50 pips.
- Close half of the contracts with a profit equal to 70 pips and leave the rest of the contracts until the 17.85 support levels.
The USD/TRY settled on minor changes, as global reports showed the expansion of foreign reserves in the country. This gives flexibility for the central bank to intervene to stop or slow down the course of the lira's decline against the dollar. Especially with the contradiction of financial policies and monetary easing in Turkey, where interest rates are reduced, unlike what is happening in the United States, where there are fears of greater tightening in monetary policy. This is especially true after inflation data in the United States issued yesterday, which showed a decline less than analysts’ forecasts, amid Expectations of a larger interest rate hike during the next meeting this month.
International reports from Bloomberg Agency and the Financial Times had raised questions about several billion (mysterious) dollars that had been deposited with Turkish banks, as they were not included in any official state revenues. It is greater than attributing it to the savings of citizens who benefit from the tourism sector or other active sectors at the present time. Foreign reserves rose by more than $5 billion during the past month, which may contribute to covering the country's current account deficit, which continued to widen in July, bringing the total deficit this year to $36.7 billion. It is noteworthy that some reports stated that money was deposited from Russia indirectly to overcome the sanctions.
USD/TRY Technical Analysis
On the technical front, the price of the lira varied against the dollar, with the Turkish currency continuing to decline slightly during the early trading, while the pair continued to trade in a narrow range shown on the chart.
The pair is also trading within an ascending channel on the four-hour time frame. The USD/TRY is also trading near the highest at 18.27 levels. It is still trading above the 50, 100 and 200 moving averages on the daily time frame, as well as on the four-time frame, where the pair maintained the bullish trend. The pair is also trading the highest support levels, which are concentrated at 18.18 and 18.07 levels, respectively. On the other hand, the lira is trading below the resistance levels at 18.27 and 18.32. Any drop for the pair represents an opportunity to buy back again with the aim of reaching the previous high recorded during the past year. Please adhere to the numbers in the recommendation with the need to maintain capital management.
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