Top Forex Brokers
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 on Monday morning, as the Turkish currency maintained its stability for several days after a series of strong declines. The country is currently witnessing a change in the approach to monetary policy from the strong stimulus pursued by the previous administration of Turkish President Recep Tayyip Erdogan to monetary tightening and the accompanying hike in interest rates over the past month for the first time in more than two years. The Central Bank of Turkey raised interest rates by 650 basis points as part of the first steps to transform monetary policy, which depends on attracting investments and getting rid of some of the country's existing financial systems, such as lira deposits that are protected from foreign currency fluctuations.
The first positive change that the country witnessed, despite the strong decline in the value of the lira, was the increase in the volume of cash reserves of the Turkish Central Bank, which witnessed great pressure during the previous period, amid the central bank's efforts to support the price of the lira. In the details, Turkish Finance Minister Mehmet Simsek revealed a historic increase in the net size of the Turkish Central Bank's reserves, which recorded an increase of $8.5 billion during the past week alone. The Turkish Minister of Finance also tweeted on the social networking site Twitter, saying: We will work continuously to gradually return to traditional financial policies, in conjunction with the acceleration of our efforts to obtain additional foreign resources in order to enhance the volume of cash reserves.
TRY/USD Technical Analysis
On the technical front, without major changes, the price of the dollar against the Turkish lira recorded stability during early trading this morning, as the pair recorded slight changes near its all-time highs. The pair is trading within a general bullish trend that has slowed down recently. Currently, the pair is trading around the 26.05 level, above 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 some.
Ready to trade our daily Forex analysis? We’ve made this forex brokers list for you to check out.