Traders who have had the courage to speculate on the USD/TRY and have been participating in the currency pair over the past week are likely looking at their technical charts a bit surprised. Slight downward results in the USD/TRY the past week have in fact occurred.
The USD/TRY was trading near the 23.67200 mark this past Friday and this Monday, and as of this writing the Forex pair is around the 23.54300 ratio. However, as traders know, this difference in value is not very significant, but any type of downturn in the USD/TRY will be taken as an optimistic result by Turkish citizens who are battling inflation and the loss of value in the Turkish Lira over very long time durations. The consolidation in the USD/TRY is a healthy sign, but how long will it last?
One Month USD/TRY Charts Should be viewed for Perspective
Before speculators rush into selling positions of the USD/TRY for short-term wagers they first should look at a one-month chart, and acknowledge the value of the currency pair remains locked within the upper tier of its value. Then they should look at a five-year chart, and understand the behavioral sentiment of the USD/TRY over the long term. The results of the USD/TRY have been an upwards climb.
While there have been brief spurts of hope and optimism that the USD/TRY was going to trade in a stable and even perhaps a bearish manner over the past five years, those intervals have not been able to be sustained. Thus, traders now need to ask if the past few days of results in which selling has been produced and created spikes downwards are momentary illusions. While the USD/TRY has moved slightly lower, this downward track may not be able to last very long.
U.S Federal Reserve Chairman Powell Creating Impetus
Fed Chairman Jerome Powell warned the U.S. House of Representatives yesterday that more interest rates are likely because inflation remains stubborn. While Forex markets did not go into a panic mode yesterday and started buying the USD in great strength, the USD did start to show signs of renewed strength within some major currency pairs. The USD/TRY could react with more upwards power eventually if Jerome Powell’s comments are taken seriously, if not the currency pair could also continue to move higher based on the notion the Turkish government fiscally remains troublesome.
- Speculators who want to wager on reversals higher in the USD/TRY may be inclined to buy the currency pair on moves that touch support levels below, to ignite upwards wagers.
- Betting on the USD/TRY is risky and full of hidden transactional costs.
- Before trading the Forex pair, day traders need to understand the fees. Using entry, stop loss and take profit orders are essential when betting on the USD/TRY.
Turkish Lira Short-Term Outlook:
Current Resistance: 23.57000
Current Support: 23.49010
High Target: 23.68000
Low Target: 23.39000
Ready to trade our Forex daily analysis and predictions? Here's a list of regulated forex brokers to choose from.