Today's recommendation on the TRY/USD
Risk 0.50%.
Best buying entry points
- Entering a buy deal with a pending order from the 27.50 level.
- Place a stop loss closing point below the 26.25 level.
- Move the stop loss to the entry area and follow the profit as the price moves by 50 points.
- Close half of the contracts with a profit equal to 70 points and leave the rest of the contracts until the strong resistance level at 27.80.
Best-selling entry points
- Entering a sell deal with a pending order from the 27.99 level.
- The best points to place a stop loss are closing the highest level of 28.09.
- Move the stop loss to the entry area and follow the profit as the price moves by 50 points.
- Close half of the contracts with a profit equal to 70 points and leave the rest of the contracts until the support level of 27.70.
The price of the US dollar rose against the Turkish lira during early trading this week. The lira was exposed to pressure from the rise of the dollar against major currencies and the currencies of emerging market countries after the demand for it increased during the past week with increasing tensions in the Middle East region as investors rushed to safe haven currencies. At the same time, the shift in monetary policy in the country has not found the expected response yet, as many financial and monetary policymakers in the country indicated that the impact is expected to appear during the next year.
Data issued by the Turkish Statistics Authority at the end of last week revealed that the volume of the country’s exports increased by 12 percent during the first eight months, bringing exports to 21.6 billion dollars during August, compared to 19.3 last January. Analysts attributed this increase to the decline in the price of the Turkish lira against the dollar during the same period by more than 40%. At the same time, the decline of the lira contributed to reviving the tourism sector in Turkey during the current year, which in turn contributed to reducing the trade deficit last August. Travel revenues increased by about $1 billion. In this regard, data revealed that the country's current account deficit declined by about 90% during the month of August compared to July, with the deficit recording only about $619 million compared to about $5.5 billion in July.
TRY/USD Technical Analysis
On the technical level, the dollar pair rose against the Turkish lira to trade at its highest level ever during early trading this morning, as the pair traded at the 27.87 level. The pair's trading settled within an ascending price channel on the 240-minute time frame shown in the chart.
Currently, if the pair goes up, it targets the resistance levels concentrated at 27.99 and 28.19, respectively, while if the pair declines, it targets the support levels concentrated at 27.60 and 27.30, respectively. The price is moving above the 50 and 200 moving averages on the daily time frame, as well as on the four-hour and 60-minute time frames, indicating the buyers’ control and the return of the general upward trend recorded by the pair. The pair is expected to record gains as long as it settles within the ascending price channel range. Please adhere to the numbers in the recommendation, while maintaining capital management.
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