Today's recommendation on the TRY/USD
Risk 0.50%.
Best buying entry points
- Entering a buy deal with a pending order from the 28.90 level.
- Place a stop loss closing point below the support level at 28.70.
- 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 29.15.
Best-selling entry points
- Entering a sell deal with a pending order from the level at 29.15
- The best points to place a stop loss are closing the highest level of 29.25.
- 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 28.85
The dollar pair rose against the Turkish lira during early trading on Thursday. The pair is trading at all-time highs above 29.15 levels. Investors are awaiting the interest rate decision that is expected to be issued by the Turkish Central Bank later today. Current expectations are for a 2.5% rate hike, while some less widespread forecasts suggest the possibility of a 5% hike. The Central Bank continues the series of raising interest rates that has been ongoing since the middle of this year, as the interest rate was raised with the new economic team taking over after the presidential elections that took place in the middle of the year, reaching 40 percent at present, compared to 8.5 percent before the elections were decided.
In other news, Moody's credit rating agency commented on the shift in monetary policy in Turkey, as a report issued by the agency suggested the possibility of amending the future outlook for the economy if this shift continues to become positive. The report also included expectations for average inflation rates during 2023, which is expected to increase. It reaches 53%, before that average rises to 58% during 2024 and then declines to 39% during 2025.
On the technical level, the dollar pair rose against the lira during early trading this morning, as the pair traded at its highest level ever at 29.15, while the lira recorded its lowest levels ever against the dollar at 29.16 hours of writing the report.
TRY/USD Technical Analysis
The price continues to move within a large price channel in today's time frame, reflecting the strong general upward trend that the pair has been following over several months. While the pair has recently recorded a slowdown, with the price entering another ascending price channel, but it is less severe. If the pair rises, it targets the resistance levels, which are concentrated at the 29.20 and 29.25 levels, respectively, while on the other hand, if the pair declines, it targets the 28.90 and 28.75 levels, respectively.
The pair is trading above the 50 and 200 moving averages respectively on the day time frame, as well as on the 4-hour time frame in a reflection of buyers' control over the price. The pair is expected to continue its general upward trend as long as it stabilizes within the borders of the mentioned price channels. Please adhere to the mentioned recommendation points and maintain capital management.
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