Signals for the Lira Against the US Dollar Today
- Risk 0.50%.
Bullish Entry Points:
- Open a buy order at 33.90.
- 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 34.15.
Bearish Entry Points:
- Place a sell order for 34.15.
- Set a stop-loss order at or above 34.30.
- 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 traded against the US Dollar in early trading on Thursday morning. The pair continued to move in a limited range around the correct number 34 lira per dollar over the past weeks, amid signs of moving the currency orbit amid indirect support from the financial and monetary authorities in Turkey for the lira price. The authorities are preventing a significant decline in the lira price as part of the government's plans to prevent the expansion of inflation, which is the primary goal of the economic team in Turkey.
Markets are awaiting the interest rate decision in Turkey today, which most estimates indicate will be fixed at the same levels of 50%, which are the same levels at which the main interest rates in the country have stabilized over several months, as part of combating inflation rates in the country. At the same time, some expectations indicate the possibility of gradually reducing interest rates towards the end of the year, especially with the shift in monetary policy in the United States of America and the beginning of interest rate cuts by the Federal Reserve.
In this regard, reports revealed demands from manufacturers in Turkey to reduce the price of the Turkish lira to support exports. Especially after some Southeast Asian countries outperformed Turkey in the volume of exports to the European continent, which lost the advantage of proximity, which is considered a competitive advantage to a large extent. Meanwhile, Turkish exporters lost some of their markets in Europe with the decline in the volume of available credit due to the interest rate hike.
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TRYUSD Technical Analysis and Expectations Today:
On the technical level, the price of the US dollar against the Turkish lira (USD/TRY) stabilized in the same limited price range that the pair has been trading within since the beginning of this September. As the price trades in a horizontal rectangular range between the levels of 33.80 and 34.07 over the past weeks, the price divergence around the 50-moving average on the four-hour time frame reflects the medium-term divergence recorded by the price. While on a larger price range, the pair is moving within an ascending price channel on the daily time frame, as shown in the chart. The price is supported by trading above the 50 and 200 moving averages on the same time frame, indicating the general upward trend of the dollar against the lira. The Turkish Lira price forecast includes the pair's variability, especially if it stabilizes within the mentioned horizontal rectangle. While if the price rises above the rectangle's range, it may target resistance at 34.25 and 34.50 levels, respectively. Ultimately, if the horizontal range is broken, the pair targets support levels at 33.70 and 33.50, respectively.
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