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 Turkish currency did not record any changes despite the positive data issued this morning about the decline in the inflation rate in the country. The USD/TRY settled at the same level it has been trading for nearly two months. Investors followed early data issued by the country’s Institute of Statistics, which revealed in its latest report issued this morning that the annual inflation rate declined to 64.26% last December, as the figure declined sharply compared to the same data for November, in which inflation recorded a rate of 84.39 %.
On a monthly basis, the consumer price index in Turkey recorded an increase of 1.18% during the last month of 2022. Housing prices were the main reason for the increase in the index after it recorded an increase of 79.83% on an annual basis. On the other hand, the clothing and footwear category had the least increase in prices after it increased by 25.87% year-on-year. It is noteworthy that inflation in Turkey has reached its highest level in 25 years due to high energy costs and the decline in the value of the lira, which lost about 30% of its value over the past year.
USD/TRY Technical Analysis
On the technical front, the USD/TRY stabilized, recording slight changes. Where it settled in the same limited trading range in which the pair has settled for a period of more than two months since mid-October. Currently, the dollar against the pound is trading above the support levels of 18.61 and 18.50, respectively.
On the other hand, the pair is trading below the resistance levels at 18.83, which represents the highest price for the pair recorded during 2022. The pair is also trading below the psychological resistance levels at 19.00. At the same time, the price settled above the ascending trend line on the four-hour time frame, shown on the chart. The dollar pair against the lira trades above the moving averages 50, 100, and 200 on the daily time frame, in a sign of the general bullish trend of the pair, while the price trades between these averages on the four-hour time frame, as well as the lower time frames, in a sign of the divergence recorded by the pair in the medium term. Any drop in the pair represents an opportunity to buy back again. Please adhere to the numbers in the recommendation, while maintaining capital management.
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