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 TRY/USD traded stable against the dollar for the second week in a row, indicating the intervention of government banks to maintain the price of the lira, albeit in a less strong way than it was previously. In the meantime, investors followed reports about the Turkish government's tendency to increase taxes as part of the government's plans to reduce the budget deficit, which expanded after the huge government spending that preceded the election period that took place during the month of May, as well as from the effects of the devastating earthquake that struck the south of the country during the month of February. Estimates for raising taxes range from levels of 20 percent to 25 percent.
In other news, reports stated that Turkish President Recep Tayyip Erdogan is ready to attract more investments to increase the country's foreign currency income from the Arab Gulf countries, as reports indicate that the expected investment volume will reach about $25 billion through privatization. In this regard, the Turkish government is negotiating with some Countries in the Gulf to sell the rights to operate one of the ports located in the city of Izmir. It is noteworthy that the volume of the country's cash reserves increased at the end of last month after the Turkish Central Bank withdrew from supporting the lira strongly, which raised the volume of the reserves to the limits of 9 billion dollars after it reached negative 5 billion dollars at the beginning of last month.
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 traded near its highest levels ever. The pair is currently trading within a rectangular range defined by a general bullish trend, which showed a slowdown recently. Currently, the pair is trading around the 26.09 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 stability at the present time, is expected to be delayed. Please adhere to the figures in the recommendation, while maintaining capital management.
Ready to trade our Forex daily forecast? We’ve shortlisted the best FX trading platform in the industry for you.