Signals for the Lira Against the Dollar Today
- Risk 0.50%.
Best Buying Points:
- Open a buy order at 31.50.
- Set a stop-loss order below 31.15.
- Move the stop-loss to the entry point and follow the profit with a price movement of 50 pips.
- Close half the contracts at a profit of 70 pips and leave the rest until the strong resistance levels at 32.50.
Best Selling Points:
- Place a sell order at 32.32.
- Set a stop-loss order at or above 32.67.
- Move the stop loss to the entry point and follow the profit with a price movement of 50 pips.
- Close half the contracts at a profit of 70 pips and leave the rest until the support levels at 31.50.
Turkish lira Analysis:
The USD/TRY pair rose slightly in early trading on Thursday. Recently, the pair has maintained a weak and steady upward trend since last week. Investors followed the statements of Turkish Treasury and Finance Minister Mehmet Simsek, who spoke about austerity measures that the Turkish government may take. The Turkish minister said that no funds outside the Turkish budget will be allocated to public institutions, insisting that these institutions, as well as all ministries and municipalities, adhere to the limits set in their budgets only and not seek additional funding. Similarly, the Turkish minister stressed that the government will not allow the construction of new public buildings but will work to save on the costs of existing public buildings.
Meanwhile, the austerity measures included saving on vehicles in the public sector, where restrictions will be imposed on public service and non-essential services will be terminated. Also, the updates will include the legislative side of public procurement, as the government aims to bring it into line with international standards.
In other statements, the Turkish minister announced that an agreement had been reached with the World Bank that would allow Turkey to receive $18 billion in funding over three years. Clearly, this came after the World Bank previously provided $1.5 billion earlier in the year, which was earmarked to support the green transformation of companies operating in the country.
USD/TRY Technical Analysis and Expectations Today:
The pair rose in early trading today. The dollar rose for the sixth consecutive day, albeit at a slow pace. The price is currently moving below the lower bound of the ascending price channel on the daily time frame, as shown in the chart attached.
At the same time, the pair is trading above the 50 and 200 moving averages, which are positively crossing, on the daily time frame, reflecting the overall upward trend of the pair, while the price is moving around these averages on the four-hour time frame, indicating stability in the medium term. Therefore, If the pair rises, the nearest resistance levels are concentrated at 32.32 and 32.37, respectively. Furthermore, if the price falls, it targets 32.10 and 31.75, respectively.
Ultimately, the Turkish lira price forecast is for the pair to rise and target the aforementioned resistance levels. Decisively, we recommend adhering to the mentioned recommendations and maintaining capital management rules.
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