TRY/USD Forex Signal: The Stability is Near its Lowest Level Ever

Today's recommendation on the lira against the dollar

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 level 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 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 stabilized during early trading on Thursday morning. In the absence of influential data, the interventions of the Turkish Central Bank represent a factor in balancing the price of the Turkish lira, as the bank stands as an obstacle to the decline of the lira. Investors followed the publication of the minutes of the Federal Reserve in the United States of America yesterday, which showed the adherence of the members of the Federal Open Market Committee to the policy of monetary tightening. This is expected to push the dollar to rise against the major and emerging market currencies, which was not clearly reflected in the price of the lira that the central bank provides for it.

Turkey is a kind of support to prevent its decline. The data issued at the beginning of this week came as a surprise, as inflation declined on an annual basis in a way that exceeded expectations, after inflation recorded a decline of 64% in December, compared to 85% in November. The improvement of some data in Turkey and the approaching decisive elections for the ruling party may suggest an important factor in the stability and perhaps the rise of the Turkish lira in the coming months.

TRY/USD Technical Analysis

 On the technical front, the dollar pair traded against the Turkish lira without major changes, as it traded on minor changes, inside a rising wedge pattern on the time frame of the day. It settled in the same limited trading range that it has been trading around since mid-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 levels at the integer number 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 of 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.