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USD/TRY Forecast: Central Bank Takes Steps to Phase Out Protected Deposit System

By Amir Issa
Economic editor , more than 12 years experience in the global financial markets and in the field of currency and metals trading. I supervised on many sites related to investment, finance and training in the field of forex and global exchanges.

Signals for the Lira Against the US Dollar Today 

  • Risk 0.50%. 

Bullish Entry Points: 

  • Open a buy order at 32.95. 
  • Set a stop-loss order below 32.75. 
  • Move the stop-loss to the entry point and follow the profit with a price movement of 50 pips. 
  • Close half the contracts at a profit of 70 pips and leave the rest until the strong resistance levels at 32.29. 

Bearish Entry Points: 

  • Place a sell order for 33.25. 
  • Set a stop-loss order at or above 33.34. 
  • Move the stop loss to the entry point and follow the profit with a price movement of 50 pips. 
  • Close half the contracts at a profit of 70 pips and leave the rest until the support levels at 32.99. 

USD/TRY Forecast Today - 18/07: Bank Ends Deposits (Chart)

The performance of the Turkish currency declined against the dollar during the overall trading of the current week, as the lira continued its losses to record new record levels despite the decline in the global dollar index. Recently, the USD/TRY pair reached levels of 33.09 liras per dollar during yesterday's trading. The decline of the lira comes in conjunction with the improvement of economic figures in the country. Moreover, Future expectations for economic growth in Turkey also improved. In this regard, the International Monetary Fund raised its expectations for economic growth in Turkey during 2024 from 3.1%, which it had issued in its previous expectations, to 3.6%. also, it revised its expectations for growth in 2025, as it expected the Turkish economy to grow by 2.7%. 

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In other news, investors followed the Turkish Central Bank's steps to gradually phase out the foreign currency-protected deposit system in Favor of Lira deposits. Also, reducing offshore accounts. The Turkish Central Bank issued instructions to commercial banks to lower interest rates on protected deposits, with the new rate reductions set to begin next week. 

Meanwhile, in terms of data, yesterday's statement was issued by the country's statistical authority, which revealed that home sales across the country decreased by 7.5 percent during the month of June compared to the same month in 2023. At the same time, the figures revealed that home prices increased by 1.3 percent monthly and 45 percent on an annual basis in May. 

TRY/USD technical Analysis and Expectations Today: 

The USD/TRY exchange rate continued to rise yesterday, showing mixed movement in early trading today. Recently, the price hovered near its all-time high at 33.09 Lira. Currently, the pair is moving at the upper boundary of the ascending wedge pattern on the daily timeframe, as shown in the chart. Technically, the bullish momentum continued with the price trading above the 50 and 200 moving averages on both the daily and four-hour timeframes, indicating a strong uptrend. If the pair continues to rise, it targets resistance levels at 33.25 and 33.50 Lira respectively. On the downside, support levels are at 32.90 and 32.70 Lira respectively. Finally, the Turkish Lira price forecast suggests an upward trend as long as the price remains above the ascending trendline. 

Ready to trade our daily Forex forecast? Here’s a list of some of the top forex brokers in Turkey to check out. 

Amir Issa
About Amir Issa
Economic editor , more than 12 years experience in the global financial markets and in the field of currency and metals trading. I supervised on many sites related to investment, finance and training in the field of forex and global exchanges.
 

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