Today's recommendation on the TRY/USD
Risk 0.50%.
Best buying entry points
- Entering a buy position with a pending order from levels of 18.39.
- Set a stop-loss point to close below the 18.25 support levels.
- Move the stop loss to the entry area and continue to profit as the price moves by 50 pips.
- Close half of the contracts with a profit of 70 pips and leave the rest of the contracts until the strong resistance levels at 18.99.
Best selling entry points
- Entering a short position with a pending order from levels of 18.99
- The best points for setting stop-loss are closing the highest levels of 19.15.
- Move the stop loss to the entry area and continue to profit as the price moves by 50 pips.
- Close half of the contracts with a profit equal to 70 pips and leave the rest of the contracts until the 18.55 support level.
The Turkish lira stabilized near its lowest level ever against the US dollar, as investors followed the statements of Turkish President Recep Tayyip Erdogan yesterday. Erdogan said that the Turkish Central Bank will continue to reduce interest rates and claimed that such measures will lead to a decline in inflation. The Turkish president's comments come after Turkey's central bank lowered its benchmark one-week repo rate from 13% to 12% despite other central banks raising interest rates in a bid to bring down inflation. After the recent interest rate cut, the Turkish lira hit a record low against the US dollar. Inflation was at 80.10% in August. Experts do not expect any improvement in the price of the lira by following a stimulus monetary policy suggested by the country's president, who indirectly controls the decisions of the Central Bank of Turkey.
USD/TRY Technical Analysis
On the technical front, the price of the Turkish lira varied against the dollar, with the pair trading near its highest levels ever, as it closed at the 18.58 level. The pair maintained a strong bullish trend. It is also trading the highest levels of support, which are concentrated at levels of 18.50 and 18.40, respectively.
On the other hand, the lira is trading below the resistance levels at 18.99. The pair is also trading above the 50, 100 and 200 moving averages on the daily time frame, as well as on the four-hour time frame.
Any drop for the pair represents an opportunity to buy back again with the aim of reaching the previous high recorded during the past year. Please adhere to the numbers in the recommendation with the need to maintain capital management.
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