Signals for the Lira Against the US Dollar Today
Risk 0.50%.
Bullish Entry Points:
- Open a buy order at 32.70.
- Set a stop-loss order below 31.99.
- 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 32.35.
Bearish Entry Points:
- Place a sell order for 32.99.
- Set a stop-loss order at or above 33.14.
- 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 32.75.
Turkish lira Analysis:
The USD/TRY pair has remained stable during this week's trading, with the lira recovering slightly from its all-time lows against the dollar. Concurrently, investors are eagerly awaiting today's interest rate decision in Turkey.
Expectations are for another steady rate hold at a historic 50%, a measure by the Central Bank of Turkey to curb rampant inflation. Recent data revealed that inflation surged to 75%, despite the monetary policy shift a year ago. President Recep Tayyip Erdoğan, after winning re-election last year, reversed the previous unorthodox policy of lowering interest rates despite high inflation, a strategy pursued by the Central Bank of Turkey in prior years. Following his victory, Erdoğan appointed a new economic team that tightened monetary policy and rolled back many of the Central Bank's former measures. According to policymakers in Turkey, inflation figures are expected to show some improvement in the latter half of this year.
On the data front, the Central Bank of Turkey announced yesterday that its net foreign exchange reserves had reached a record high of $146.301 billion. Meanwhile, investors are also monitoring comments from Turkey's Labor Minister, who dismissed the possibility of raising the minimum wage before December.
TRYUSD Technical Analysis and Expectations Today:
The USD/TRY exchange rate maintained its trading within a narrow range this morning, hovering near its all-time high of 33.00 lira per dollar, reached earlier this week. Currently, the pair is supported by two upward trend lines on the four-hour chart, as shown in the provided graph. Additionally, the pair continues to trade above the 50 and 200 moving averages on both the four-hour and daily timeframes, indicating the prevailing upward trend.
If the price rises, it is expected to target resistance levels at 33.10 and 33.25. Conversely, if the price drops, it will likely aim for support levels at 32.75 and 32.50. Finally, the forecast for the Turkish lira suggests a price increase targeting the mentioned resistance levels.
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