TRY/USD Forex Signal: Hits its Highest Level in Three Weeks, Before Losing its Gains

Any decline in the pair represents an opportunity to buy back again.

Today's recommendation on the TRY/USD

The risk is 0.50%.

Best buying entry points

  • Entering a buy order pending order from the 18.60 level.
  • Place a stop loss point to close below the 18.45 support level.
  • Move the stop loss to the entry area and follow the profit when 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 strong resistance levels at 19.00.

Best-selling entry points

  • Entering a sell order pending order from the 19.00 level.
  • The best points to place a stop loss close to the highest level of 19.15.
  • Move the stop loss to the entry area and follow the profit when 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 18.75 support level.

The exchange rate of the TRY/USD witnessed a strong movement during the early trading on Monday morning. As the dollar fell against the Turkish lira, the pair recorded its lowest level in three weeks, before rising again to trade at the same levels that it had settled at in recent weeks. It seems that there has been a strong speculative movement in the lira, which the Turkish government and the country's central bank are working to maintain its stability or slow down its decline, at the very least.

The Central Bank of Turkey intervenes with direct measures by imposing rules and regulations on commercial banks in the country, according to some reports, those regulations have reached nearly 100, with the aim of reducing the use of the foreign exchange. Especially with anticipation of the crucial presidential and parliamentary elections that are expected to take place in the middle of this year. This is a test of the popularity of the Turkish president, who adopts a "new economic model" based on lowering the interest rate with the aim of supporting investment and exports to reduce the country's trade deficit, as the Turkish president believes that low-interest rates on loans drive production and thus increase exports and reduce inflation.

USD/TRY Technical Analysis

On the technical front, the USD/TRY recorded a big movement to break through the limited trading range, albeit temporarily, as the pair retreated strongly to break the lower border of the rising wedge pattern on the time frame of the day, before rising at the same limited trading range that it has been trading around since mid-month. last October. Currently, the dollar against the pound is trading above the support levels of 18.70 and 18.60, respectively.

 On the other hand, the pair is trading below the resistance level at 18.83, which represents the highest price for the pair recorded in 2022. The pair is also trading below the psychological resistance level at 19.00. The dollar pair against the lira is also trading above the moving averages 50, 100, and 200 on the daily time frame as well as on the four-hour time frame, and the lower time frames, indicating the general bullish trend for the pair. Any decline in the pair represents an opportunity to buy back again. Please adhere to the numbers in the recommendation, while maintaining capital management.

USD/TRY

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Amir Issa
Economic editor , more than 12 years experience in the global financial markets and in the field of currency and metals trading. I supervised on many sites related to investment, finance and training in the field of forex and global exchanges.