Today's recommendation on the TRY/USD
The risk is 0.50%.
Best buying entry points
- Entering a buy order pending order from the 26.50 level.
- Place a stop loss point to close below the 26.25 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 rest of the contracts until the strong resistance level at 27.50.
Best-selling entry points
- Entering a sell order pending order from the 27.50 level.
- The best points to place a stop loss close the highest level of 27.65.
- 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 26.50.
The Turkish lira traded stable against the US dollar during early trading this week. Investors followed the decision of the Central Bank of Turkey at the end of last week, which raised the interest rate by 250 basis points, which is lower than the previous expectations, which ranged between 300 to 350 basis points.
At the same time, the Central Bank of Turkey announced some other measures that would contribute to tightening monetary policy within the bank's objectives to control high inflation rates, which reach approximately 40 percent levels. The Central Bank announced the imposition of larger deposits in the Turkish lira on commercial banks in the country to be deposited in the Central Bank to cover deposits of the Turkish Lira Deposit Protection Program from fluctuations in the foreign exchange rate, as the reserve requirements for deposits with a duration of more than six months were raised by about 15%. This is part of the central bank's efforts to tighten monetary policy and reduce demand in general.
TRY/USD Technical Analysis
On the technical level, the dollar pair stabilized against the Turkish lira during early trading this morning, as the pair traded below 27 levels, which is its new highest level ever, which it recorded during the previous week's trading. The pair has now breached the rectangle range that settled inside it for about two weeks, to return to trading within a general bullish trend, while trading below other resistance areas concentrated between the levels of 27.12 and 27.50, and the pair is trading above the support levels concentrated at 26.26 and 26.00, respectively.
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. It is expected that the impact of the tightening by the Turkish Central Bank on the price of the lira, which analysts estimated to be around 29 liras per dollar, is expected to be delayed. Please adhere to the figures in the recommendation, while maintaining capital management.
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