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Today's recommendation on the TRY/USD
Risk 0.50%.
Best buying entry points
- Entering a buy deal with a pending order from the 28.60 level.
- Place a stop loss closing point below the support level at 28.40.
- 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 28.75.
Best-selling entry points
- Entering a sell deal with a pending order from the 28.99 level.
- The best points to place a stop loss are closing the highest level of 29.15.
- 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 28.75.
The Turkish currency fell to record new lows against the US dollar during early trading on Wednesday morning. The dollar pair rose against the Turkish lira during early trading, exceeding 28.92 levels, the highest level ever recorded by the pair. Meanwhile, investors followed the praise of some officials in commercial banks in Turkey for the central bank’s decision to raise the interest rate to 40 percent. Hakan Aran, General Manager of Isbank in Turkey, said that the central bank is monitoring inflation developments and economic figures, as the bank is expected to stabilize interest rates, which have witnessed a successive series of increases over several months, once capital flow returns as required, before starting In reducing interest rates as the economic environment improves.
The Turkish banker's statements also included expectations of a future increase in interest rates estimated at about 250 basis points at the central bank meeting during December, which is an important decision to control inflation rates, especially since raising interest rates in light of the economic situation the country is witnessing is not considered a negative thing, but rather a negative matter. The opposite is true development. Finally, the Turkish banker expected that deposits in the Turkish lira would rise at the expense of deposits protected from foreign currency fluctuations.
The Turkish Central Bank raised interest rates during a meeting last Thursday by 500 basis points to reach 40 percent, a rate of increase double what most economic reports expected.
TRY/USD Technical Analysis
On the technical level, the dollar pair against the Turkish lira rose slightly, as the pair recorded its highest levels ever at 28.92 levels during early trading this morning. The pair settled within the ascending price channel on the 240-minute time frame shown in the chart. If the pair declines, it will target the support levels concentrated at 28.75 and 28.55, respectively. On the other hand, if the price rises, it will target the resistance levels, which are concentrated at 28.99 and 29.15, respectively. Despite the pair's rise, we notice a slowdown in the pace of those rises.
At the same time, the price is trading above the 50 and 200 moving averages on the daily time frame, as well as on the four-hour time frame, indicating the control of buyers within the general upward trend that the pair is recording in the long term. The change in monetary policy may prepare the pair to record an upward wave, but at a slower pace. Please adhere to the numbers in the recommendation, with the need to maintain capital management.
