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Today's recommendation on the TRY/USD
The risk is 0.50%.
Best buying entry points
- Entering a buy order pending order from the 19.80 level.
- Place a stop loss point to close below the 19.39 level.
- 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 remaining contracts until the strong resistance level at 25.00.
Best-selling entry points
- Entering a sell order pending order from the 20.00 level.
- The best points for placing a stop loss close to the highest level of 20.15.
- 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 19.75.
The Turkish lira continued its losses against the dollar, as the lira records daily declines in what appears to be a free fall. The lira’s declines expanded with the increasing chances of the country’s current president, Recep Tayyip Erdogan, to settle the second round of elections, scheduled for the 28th of this month, and to remain in the presidency after Sinan Ogan, who won 5.17% of the vote in the first round of the Turkish presidential elections that were held.
Ogan, the right-wing coalition's candidate, formally asked his constituents on Monday to vote for Erdogan in a runoff against the main opposition candidate Kemal Kilicdaroglu that will take place on May 28. Erdogan won with 49.52%, while his opponent Kilicdaroglu won the support of 44.88% of the voters in the first round. Erdogan's success in staying in office means the continuation of the monetary policy he adhered to, which is based on stimulating the economy contrary to what is internationally recognized, as the Turkish president is pressuring the country's central bank to lower the interest rate. This is at a time when the bank is suffering from a decline in the volume of cash reserves and, consequently, the inability to support the Turkish lira as expected.
TRY/USD Technical Analysis
On the technical front, the dollar pair against the Turkish lira maintained its gains, recording new peaks, as it reached new all-time highs after the pair touched the correct number at 20 liras per dollar this morning. The US dollar maintained its gains against the lira, which accelerated during the current election period. Currently, the price has broken the upper border of the ascending channel on the four-hour time frame, with the price closing above the upper border of the channel, and the price is trading above a rising trend line on the same timeframe.
At the same time, the pair is trading above the support levels, which are concentrated at 19.80 and 19.70, respectively. The price also settles below the resistance levels that are concentrated at 20.00 and 20.50. The price is moving above the moving averages 50, 100, and 200 on the daily timeframe, as well as on the 4-hour and 60-minute timeframes, in a sign of the strong bullish general trend. Because of the expected changes in monetary policy after the elections, any decline in the dollar against the lira represents an opportunity to buy back again. Please adhere to the figures in the recommendation, while maintaining capital management.
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