On the technical side, the dollar pair stabilized against the Turkish lira during early trading today, with the pair trading below the all-time high of 27, its new all-time high seen during the previous week’s trading.
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- 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.
Trading with TRY/USD during early trading this morning, amid a lack of news affecting the movement of the Turkish lira. Currently, international reports indicate that government banks will return to pumping dollars into the markets as the Turkish government seeks to achieve some balance on the price of the lira. Turkey’s central bank continued its policy of monetary tightening after raising interest rates by 250 basis points during Thursday’s session, less than market expectations.
Turkey’s central bank is also working to withdraw cash available to commercial banks by approving some procedures that contribute to this transformation, as the central bank adjusted some rules for a system introduced by the Turkish president, known as hedged deposits, to withdraw about 400 billion lira from banks. Investors followed the Turkish president’s trip to the Gulf Arab states last week, where he secured trade and investment deals worth more than billions from Saudi Arabia, the United Arab Emirates and the state of Qatar, which are likely to reduce the shortfall the country faces in foreign exchange reserves in the medium term.
On the technical side, the dollar pair stabilized against the Turkish lira during early trading today, with the pair trading below the all-time high of 27, its new all-time high seen during the previous week’s trading. The pair is currently trading above the rectangle range that it settled in for about two weeks to return to trading within a general bullish trend, while trading below other resistance areas centered between the 27.12 and 27.50 levels, and the pair trading above the support levels which are 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.
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