Signals for the Lira Against the US Dollar Today
Risk 0.50%.
Bullish Entry Points:
- Open a buy order at 35.10.
- Set a stop-loss order below 34.85.
- 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 35.50.
Bearish Entry Points:
- Place a sell order for 35.50.
- Set a stop-loss order at or above 35.60.
- 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 35.29.
Top Forex Brokers
Turkish lira Analysis:
The USD/TRY pair stabilized near its all-time high, which it reached at the end of last week. The pair traded at levels of 35.29 lira, as the lira is heading for an annual closure on losses after declining by approximately 18% against the dollar.
Last Thursday, the Central Bank of Turkey announced a cut in interest rates from 50% to 47.5%. This is the first interest rate cut in about 22 months. Moreover, these changes in monetary policy come after a relative decline in inflation levels. Obviously, this comes after the Central Bank of Turkey kept the interest rate unchanged for eight consecutive meetings.
In other news, investors followed the announcement by the Turkish Bankers Association of the completion of major updates and verifications of currency counting machines. These exceptional measures came in response to the spread of large quantities of counterfeit $50 and $100 bills in Turkish markets. Furthermore, banks and exchange offices took strict measures to limit the negative impact of this problem on the economy.
On the data front, Turkish Trade Minister Omar Bulat stated that the country's economy is on track to achieve a gross domestic product of $1.3 trillion this year. Also, he confirmed Turkey's success in reducing the foreign trade deficit by $27 billion in the first 11 months of the year, reflecting a significant improvement in the foreign trade balance.
Other data showed that the Turkish Statistical Institute reported an increase in the average annual household income to 374,899 Turkish Liras ($10,668) in 2024, an increase of 106.9% compared to the previous year. Despite the optimistic data, experts warn of the impact of increasing wages and income in general on inflation rates, which the economic team in the country is finding it difficult to control.
TRYUSD Technical Analysis and Expectations Today:
Technically, the USD/TRY pair rose near the peak recorded last week at 35.29 lira. The pair stabilized above the ascending trendline, as well as the 50-period moving average on the 4-hour timeframe, indicating the dominance of the overall upward trend in the medium-term timeframe. Also, on the larger timeframe, the price receives support from another ascending trendline. Meanwhile, with the price moving above the 50 and 200-day moving averages. Furthermore, the forecast for the Turkish lira price tends to continue the rise of the dollar against the lira. Every decline represents an opportunity to buy again, with the pair targeting levels of 35.50 and 35.70, respectively.
Ready to trade our daily Forex forecast? Here’s a list of some of the top forex brokers in Turkey to check out.