Signals for the Lira Against the US Dollar Today
- Risk 0.50%.
Bullish Entry Points:
- Open a buy order at 33.85.
- Set a stop-loss order below 33.75.
- 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 34.25.
Bearish Entry Points:
- Place a sell order for 34.25.
- Set a stop-loss order at or above 34.34.
- 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 33.80.
Turkish lira Analysis: The Turkish lira depreciated against the US dollar during today's trading, following limited gains recorded by the Turkish currency over the past weekend. Overall, the pair maintained its stability around the 34 lira per dollar levels. Regarding monetary and fiscal policy developments in the country, investors followed the statements of Treasury and Finance Minister Simsek, who commented on inflation expectations, which continued to decline for 11 consecutive months. Furthermore, inflation rates are expected to reach 27.5% after 12 months and then decline to 18.4% after 24 months.
In other news, reports over the weekend revealed that the country's sovereign wealth fund is planning to issue Islamic sukuk for the first time, after holding talks with a few banks to determine the most appropriate time to issue these sukuk, as well as the issuance size. According to reports, sukuk worth about half a billion dollars with a maturity of 5 years are scheduled to be issued. Obviously, it is worth noting that the sovereign fund in Turkey previously sold about $7 billion earlier in the year in its first issuance of bonds, which were valued at $500 million. Ultimately, the yields of these 5-year bonds were priced at around 8.375%.
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TRYUSD Technical Analysis and Expectations Today:
On the technical side, the US dollar against the Turkish lira (USD/TRY) rose slightly during today's trading. Meanwhile, the pair maintained its fluctuation around the whole number levels of 34 lira per dollar. The pair rose from the lower limit of the ascending price channel on the daily timeframe, as shown in the chart. Trading was confined within the ascending price channel, which supports the overall upward trend dominating the pair. Also, the upward trend receives support with the price moving above the 50 and 200 moving averages, respectively, which intersect positively on the daily timeframe. While the price traded between these same averages on the four-hour timeframe, indicating divergence in the medium term. If the price rises, it targets resistance levels cantered at 34.00 and 34.25 lira, respectively. While in the event of a decline in the pair, it targets support levels at 33.75 and 33.60 lira, respectively. The forecast for the Turkish lira price includes a rise in the pair, especially as it stabilized within the specified price channel.
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