Today's recommendation on the TRY/USD
The risk is 0.50%.
Best buying entry points
- Entering a buy order pending order from the 25.50 level.
- Place a stop loss point to close below the 25.25 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 26.00.
Best-selling entry points
- Entering a sell order pending order from the 26.00 level.
- The best points to place a stop loss close to the highest level of 26.15.
- 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 25.50.
The exchange rate of the TRY/USD stabilized during early trading today, Wednesday, to witness the second temporary halt in a series of strong rises that continued for several weeks. Investors followed reports about government decisions aimed at extending the exemptions that had previously been decided on state-backed bank accounts, which were devised with the aim of reducing the demand for foreign currencies. The reports stated that the exemption will be extended during the remaining months of the current year. These accounts were updated at the end of 2021 as part of the Turkish government's attempts to control the decline of the lira, which has already succeeded in collecting nearly more than $101 billion.
Despite the government's plans to extend the exemptions, other reports stated that the Ministry of Finance and the Central Bank are planning to abandon those accounts, which put a lot of financial pressure on the state budget. It is noteworthy that Turkey is witnessing a shift in the course of monetary policy from the unconventional policy pursued by Turkish President Recep Tayyip Erdogan to the traditional policy based on monetary tightening to control inflation.
TRY/USD Technical Analysis
On the technical front, the dollar price stabilized against the Turkish lira during early trading this morning, as the pair witnessed slight changes near its all-time highs, amid a continuous wave of strong rise that lasted for nearly a month, during which the dollar pair recorded new highs on a daily basis.
Currently, the pair is trading around the 26.05 level, which is higher than the support levels that are concentrated at 26.00 and 25.50, respectively. The price also settles below the resistance levels that are concentrated at 26.50 and 27.00. 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. The effect of the tightening by the Turkish Central Bank on the lira price, which is expected to record further declines, is expected to be delayed. Please adhere to the figures in the recommendation, while maintaining capital management.
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