Signals for the Lira Against the US Dollar Today
- Risk 0.50%.
Bullish Entry Points:
- Open a buy order at 34.10.
- Set a stop-loss order below 33.90.
- 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 34.30.
Bearish Entry Points:
- Place a sell order for 34.35.
- Set a stop-loss order at or above 34.51.
- 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 33.99.
Turkish lira Analysis:
The US dollar pair varied against the Turkish lira during today's trading, while the lira had recorded fairly good gains during yesterday evening's trading. Moreover, the Turkish currency was unable to maintain its gains as the pair returned to trading in the same range around 34.22 levels compared to 34.00 lira levels yesterday evening.
Unlike emerging countries' currencies, the Turkish lira witnessed a noticeable rise against the dollar on Wednesday, despite the gains of the US currency that received support from Donald Trump's victory in the US presidency. Ultimately, the Turkish currency rose by 0.3% supported by pumping more dollars into the markets in moving the orbit of the Turkish currency.
A report published by Bloomberg revealed that government banks in the country pumped about half a billion dollars during Asian trading before the official announcement of the election results in order to maintain the stability of the lira price at the same levels at which the price has been trading for several weeks. The report also mentioned the increasing interest of foreign investors, in light of the high interest rate of 50%, which is the equations that attracted a type of interest traders "carry trade" to buy the Turkish lira.
In conjunction with the lira's consolidation, other Turkish asset classes recorded significant gains, with the yield on Turkish 10-year bonds recording a decline of about 13 basis points. At the same time, the Turkish stock market index recorded an increase of just over 3%.
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Finally, analysts indicated that the high interest rate in Turkey mitigates the impact of the dollar's rise, which contributes to the stability of the lira. As the high return is sufficient to alleviate any pressures resulting from the dollar's movements. Also, future investment expectations may carry some optimism in light of the close relationship between President Recep Tayyip Erdogan and Donald Trump, which may enhance Turkey's attractiveness to investors who bet on a positive environment for bilateral relations.
TRYUSD Technical Analysis and Expectations Today:
On the technical level, the dollar pair against the lira (USD/TRY) declined compared to yesterday's levels, as the pair traded at 34.22 liras, after recording levels of 34.00 liras during Wednesday's trading. The price was based on the ascending trend line shown in the chart. Meanwhile, the general upward trend continues to dominate the pair's trading with the price stabilizing within an ascending price channel, the price also moved above the 50 and 200 moving averages on the daily time frame, respectively. In general, the Turkish lira price forecast still includes the pair rising with every decline in the dollar, which represents an opportunity to buy back.
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