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Today's recommendation on the TRY/USD
The risk is 0.50%.
Best buying entry points
- Entering a buy order pending order from the 19.80 level.
- Place a stop loss point to close below the 19.39 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 remaining contracts until the strong resistance level at 25.00.
Best-selling entry points
- Entering a sell order pending order from the 20.00 level.
- The best points for placing a stop loss close to the highest level of 20.15.
- 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 support level at 19.75.
The TRY/USD stabilized during early trading today, Monday, after the Turkish lira recorded its lowest level ever against the US currency last Friday, a day after the Turkish Central Bank fixed the interest rate unchanged at 8.5%. While investors followed the results of the Turkish elections, of which current President Recep Tayyip Erdogan was able to win the second round on Sunday, outperforming his rival Kemal Kilicdaroglu by nearly 6%. Speaking to supporters in Istanbul, Erdogan expressed his gratitude for the overwhelming support, noting that his supporters have successfully completed both rounds of the presidential elections.
"We have completed the second round of presidential elections for the benefit of our nation," said the current leader. He went on to announce that his ruling party would lead the country for the next five years, expressing his commitment to earning the trust bestowed upon him.
As for economic expectations, Morgan Stanley predicted that the Turkish lira would lose about 30% of its value after Erdogan's victory, as the bank attributed that to the unconventional monetary policy pursued by the Turkish president, who pledged to maintain it, while the Turkish president promised that a team of experts would take over the economic issue after the election. It is noteworthy that the Turkish lira has recorded a series of losses over the past months, while the pace of losses has accelerated in recent months, especially after the earthquake that struck the country.
USD/TRY Technical Analysis
On the technical front, the dollar pair against the Turkish lira maintained its gains, as the pair settled near its new all-time high, after the pair touched the correct number at 20.12 lira last Friday. The general trend in which the US dollar is moving against the lira, which accelerated before the start of the elections, continued.
Currently, the price is trading inside a channel in the four-hour time frame. At the same time, the pair is trading above the support levels, which are concentrated at 19.80 and 19.70, respectively.
The price also settles below the resistance levels that are concentrated at 20.00 and 20.50. The price is moving above the moving averages 50, 100, and 200 on the daily timeframe, as well as on the 4-hour and 60-minute timeframes, in a sign of the strong bullish general trend. Because of the expected changes in monetary policy after the elections, any decline in the dollar against the lira represents an opportunity to buy back again. Please adhere to the figures in the recommendation, while maintaining capital management
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