Forex brokers we recommend in your region
The risk is 0.50%.
- Entering a buy order pending an order from the 26.50 level.
- Place a stop loss point to close below the 26.25 level.
- Move the stop loss to the entry area and watch for profit when the price moves 50 pips.
- Close half of the contracts with a profit equal to 70 pips and keep the rest of the contracts until the strong resistance level at 27.50.
- Entering a pending sell order from the 27.50 level.
- The best points to place a stop loss are near the highest level of 27.65.
- Move the stop loss to the entry area and watch for profit when the price moves 50 pips.
- Close half of the contracts with a profit equal to 70 pips and leave the rest until the support level at 26.50.
The Turkish lira traded flat against the US dollar earlier this week. Investors followed the Turkish central bank’s decision late last week to raise interest rates by 250 basis points, less than previous expectations of between 300 and 350 basis points.
At the same time, Turkey’s central bank announced some other measures that would help tighten monetary policy as part of the bank’s goals to control high inflation, which is reaching around 40 percent. The central bank announced larger Turkish lira deposits to the country’s commercial banks to be deposited with the central bank to cover Turkish lira deposit protection program deposits against exchange rate fluctuations, as minimum reserve requirements for deposits with a duration of more than six months were increased by about 15%. This is part of the central bank’s efforts to tighten monetary policy and reduce demand in general.
On a technical level, the dollar pair stabilized against the Turkish Lira during this morning’s trading as the pair traded below the 27 level, a new all-time high seen during the previous week’s trading. The pair has now breached the rectangle range it settled in for about two weeks to return to trading within the general bullish trend while trading below other resistance areas centered between 27.12 and 27.50 levels and the pair trading above support levels centered at 26.26 and 26.00.
The price is moving above the 50, 100, and 200 moving averages on the daily time frame, as well as on the 4-hour and 60-minute time frames, indicating a strong bullish general trend. The impact of tightening by Turkey’s central bank on the price of the lira, which analysts estimate is around 29 lira to the dollar, is expected to be delayed. Please follow the information in the recommendation and at the same time follow the capital management.
Ready to do business with us Forex daily forecast? We have been shortlisted the best FX trading platform in the industry for you.