Today's USD/TRY Recommendation
Risk 0.50%.
Best buying entry points
- Entering a long position with a pending order from levels of 18.50
- Set a stop-loss point to close below the 18.35 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 the18.55 support level.
The Turkish lira varied against the US dollar, as it continued to trade near its lowest levels ever. Today, investors are awaiting the Turkish Central Bank's decision on interest rates. Estimates indicate the possibility of reducing the interest rate by about 100 basis points during today’s meeting, to be the third consecutive month of rate cut, as it was previously cut by the Turkish Central Bank during the August and September meeting by about 100 basis points in each meeting to retreat Interest rates from 14 percent to 12 percent.
The monetary stimulus policy comes with the support of Turkish President Recep Tayyip Erdogan, who already dominates the decisions of the Central Bank of Turkey. The Turkish president believes that interest rates are the mother of all evils and that lowering interest rates will reduce inflation, contrary to what most central banks in the world follow.
USD/TRY Technical Analysis
On the technical front, the Turkish lira traded against the US currency in a mixed way, as it recorded slight changes. The was pair stable within a narrow trading range for more than two weeks.
The pair settled near its highest level at 18.66, which was recorded during the current month. The pair is trading the highest levels of support, which are concentrated at 18.50 and 18.40, respectively. On the other hand, the lira is trading below the resistance levels at 18.65 and 18.99, respectively.
In the meantime, the pair is trading above the 50, 100 and 200 moving averages on the daily time frame, indicating the general bullish trend, while the pair is trading between these averages on the four-hour time frame. It is also trading on the 60-minute time frame, which shows the extent of volatility and trading in the narrow range that the pair is recording. 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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