Today's recommendation on the USD/TRY
- Risk 0.50%.
- None of the buy or sell transactions took place in the past week
Best buying entry points
- Entering a buy position with a pending order from the 18.16 level
- Set a stop-loss point to close below the 17.95 support level.
- 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 strong 18.31 resistance level.
Best selling entry points
- Entering a sell position with a pending order from the 18.32 level.
- The best points for setting stop-loss are closing the highest 18.55 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 equal to 70 pips and leave the rest of the contracts until the 17.85 support levels.
The USD/TRY witnessed slight gains, although it continued in a very narrow dynamic range. Investors followed a report issued by Fitch Ratings Agency, which included an improvement in the economic growth expectations in Turkey during the current year. The economy is expected to rise by 5.2 percent, higher than the previously expected 4.5 growth rate. The report also expected the Turkish economy to achieve an estimated growth rate of 2.9 percent during the next year and the following year. It mentioned the success of the Turkish economy recording significant growth during the second quarter of 2022 with the increase in the volume of exports and consumption.
In the meantime, reports mentioned a Turkish-Russian consensus on the possibility of paying Russian gas dues to Turkey in Turkish lira, a previous agreement between the two countries that is expected to be discussed between the Turkish president and his Russian counterpart during their expected meeting today. In terms of the lira's movements, the matter did not differ much, as the interventions of the Turkish Central Bank appeared to control the lira's decline at a slower pace.
USD/TRY Technical Analysis
On the technical front, the price of the lira fell slightly against the dollar during the early trading, while the pair continued trading in a narrow range of movement, which is shown on the chart.
The pair is still trading within an ascending channel on the four-hour time frame. It is still trading above the 50, 100 and 200 moving averages on the daily time frame, as well as on the four-time frame, where the pair maintained the bullish trend.
The pair is also trading the highest levels of support, which are concentrated at 18.20 and 18.16, respectively. On the other hand, the lira is trading below the resistance levels at 18.28 and 18.32. 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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