Today's recommendation on the TRY/USD
The risk is 0.50%.
Best buying entry points
- Entering a buy order pending order from the 18.60 level.
- Place a stop loss point to close below the support level at 18.45.
- Move the stop loss to the entry area and follow the profit when 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 resistance level at 19.00.
Best-selling entry points
- Entering a sell order pending order from the 19.00 level.
- The best points to place a stop loss close the highest level of 19.15.
- Move the stop loss to the entry area and follow the profit when 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 support level at 18.75.
The exchange rate of the TRY/USD recorded stability during early trading, near its lowest level ever, after a strong movement at the beginning of the week. The Turkish lira was not affected by the movements of the US dollar following the statements of Jerome Powell, Chairman of the Federal Reserve, who adhered to following a restrictive fiscal policy and keeping the interest rate above 5% levels for some time until inflation is controlled.
On the other hand, Turkish Finance Minister Noureddine Nabatai said that his country's economic indicators are making progress at all levels, except for inflation, which is what all countries of the world suffer from. It is noteworthy that the inflation rate in Turkey recorded a strong decline during the month of December after the data revealed a decline in inflation to 64%. The Turkish lira has lost about 30% of its value over the past year against the US dollar, due to the discrepancy in monetary policy between the United States of America, which tightens monetary policy, and Turkey, which cuts interest rates and stimulates the economy. Meanwhile, the Turkish Central Bank intervenes in the exchange rate of the lira, as the lira declines in what is known as managed float, which allows the bank to control the movements of the lira.
TRY/USD Technical Analysis
On the technical front, the TRY/USD settled near its highest levels ever, maintaining trading within a limited range. The pair maintained its trading within the levels of the bullish channel on today's time frame, as the pair continues to rise, albeit at a slow pace. The TRY/USD is trading above the moving averages 50, 100, and 200 on the daily time frame as well as on the four-hour time frame, in a sign of the general bullish trend for the pair. Currently, the dollar pair against the lira is trading above the support levels of 18.60, 18.55, and 18.53, respectively. On the other hand, the pair is trading below the resistance levels at 18.83 and 18.86, which represents the highest price for the pair ever, as well as the pair is trading below the psychological resistance level at 19.00. Any decline in the pair represents an opportunity to buy back again. Please adhere to the numbers in the recommendation, while maintaining capital management.
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