The USD/TRY has climbed the past couple of days of trading, and is now traversing the 44.31950 vicinity, this per trading platforms which offer the chance to gamble on the Turkish Lira. However, before day traders venture into the currency pair they must understand the wide spread which must be battled via entry price orders, low volumes and high volatility. Tactics matter in the USD/TRY.
The USD/TRY continues to demonstrate its long-term incremental climb higher which has been a constant companion. Financial institutions remain in buying modes with the USD/TRY, but there is a catch for speculators who want to mirror the sentiment of large players in the currency pair, the spread and sudden short-term whipsaw movements can wipe out a wagering position.
Higher Trend but Near-Term Difficulties
Traders attempting to bet on the USD/TRY need to not only pick correctly on direction, but they need to successfully manage timeframes in order to take advantage of volatile bursts. The USD/TRY is not an easy currency pair to trade unless a speculator has deep pockets and the ability to hold onto overnight positions. Yesterday’s move higher which established higher terrain above the 44.17000 looks impressive via short-term moves, but for a trader to get a positive result they needed to have an active position and the ability to cash out when targets were hit.
The USD/TRY has moved above the 44.00000 since the first week of March, some may say this current move higher is due to the Iranian war, but that might not be true. But it can be agreed that potential moves lower – reversals – back to values below the 44.00000 have not seen much action since the 9th of March.
USD/TRY Near-Term Considerations and Tactics
The USD/TRY moved from the 44.17100 vicinity up to within sight of 44.32000 rather quickly yesterday. The currency pair has sustained its higher values early this morning. Again, it is important not to attach false narratives to the move upwards in recent weeks.
Yes, the Iranian war appears ready to continue into the foreseeable future, and this might create a lack of powerful reversals lower, but at the same time it should not make day traders overly ambitious about upside bets.
Looking for quick hitting price action in the USD/TRY is possible, but it is also a matter of luck to catch a wave of momentum created by a financial institution taking a large position.
Conservative traders should wait for some semblance technically of support levels being tested in order to ignite buying wagers on the USD/TRY.
Looking for upside may be logical, but it should be remembered that seeing opportunity and taking advantage of it are two different things.
Turkish Lira Short Term Outlook:
Current Resistance: 44.31990
Current Support: 44.31500
High Target: 44.33050
Low Target: 44.31070