Signals for the Lira Against the US Dollar Today
- Risk 0.50%.
Bullish Entry Points:
- Open a buy order at 33.50.
- Set a stop-loss order below 33.20.
- 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 33.75.
Bearish Entry Points:
- Place a sell order for 33.75.
- Set a stop-loss order at or above 33.94.
- 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 33.50.
Turkish lira Analysis:
The Turkish Lira fell against the US dollar during early trading on Thursday morning. The dollar price against the lira reached its highest level recorded earlier this month. Furthermore, investors followed a report published by Bloomberg about new measures that will be approved by the Central Bank through which the lira will be purchased through a clearing house. Also, these measures are scheduled to be carried out with the aim of tightening monetary policy and working to reduce high liquidity in the economy and support previous measures such as raising interest rates. Furthermore, the report revealed a document sent by the country's central bank to the Settlement and Custody Bank in Turkey about the bank buying the lira at an interest rate of 47%.
Previously, the Turkish Central Bank had implemented a major shift in monetary and fiscal policy in the country, after the presidential elections held in the middle of last year, when the interest rate was pushed strongly from 8.5% to 50%, which increased demand for Turkish currency assets. Clearly, the high demand for the lira by investors caused the average interest rate on deposits of up to three months to decline for three weeks to 59.1% until the beginning of this month.
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At the same time, the Central Bank of Turkey raised the deposit requirements required from commercial banks at the Central Bank to withdraw liquidity from the markets. Furthermore, this was in conjunction with the purchase of lira from the same commercial banks through auctions that took place late last year.
USD/TRY Technical Analysis and Expectations Today:
Technically, the exchange rate of the US dollar against the Turkish lira (USD/TRY) increased, as the pair reached the peak recorded earlier this month at 33.66 lira per dollar in early morning trading. Moreover, the overall upward trend of the pair continues with the price moving above the upper limit of the ascending wedge pattern on the daily timeframe. At the same time, the pair maintained its trading above the 50 and 200 moving averages, respectively. On the daily timeframe, as well as on the four-hour timeframe, indicating the dominance of the overall upward trend. If the price rises, it targets resistance levels cantered at 33.75 and 33.99 lira, respectively. While if the pair declines, it targets support levels at 33.50 and 33.25 lira, respectively. Finally, the Turkish lira price forecast includes a rise in the pair if it stabilizes above the upper limit of the wedge pattern.
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