TRY/USD Forex Signal: stability Amid the Absence

On the technical front, the dollar pair settled against the Turkish lira during early trading this morning, at almost the same levels as yesterday’s closing. 

Today’s recommendation on the TRY/USD

The risk is 0.50%.

Best buying entry points

• Entering a buy order pending order from the 18.50 level.
• Place a stop loss point to close below the 18.25 support level.
• Move the stop loss to the entry area and follow the profit when the price moves by 50 pips.
• Close half of the contracts with a profit equal to 70 pips and leave the rest of the contracts until the strong resistance level at 18.99.

Best-selling entry points

• Entering a sell order pending order from the 18.99 level.
• The best points to place a stop loss close to the highest level of 19.15.
• Move the stop loss to the entry area and follow the profit when the price moves by 50 pips.
• Close half of the contracts with a profit equal to 70 pips and leave the rest of the contracts until the 18.55 support level.

The price of the TRY/USD stabilized during early trading today, Tuesday, in the absence of any economic data affecting the dollar or the Turkish lira. With the exception of Turkey’s renewal of the mechanism, the lira-protected scheme in foreign currencies aims to enhance stability in the currency price and limit what is known as dollarization (seeking to keep the dollar against local currencies). The Turkish Minister of Finance, Nouruddin al-Nabati, announced that the Turkish lira deposit is protected from exchange rate fluctuations, and it is the mechanism that was put forward by Turkish President Recep Tayyip Erdogan a year ago with the aim of protecting Turkish lira deposits from declining against foreign currencies. It has largely succeeded in halting the lira’s deterioration against the dollar. It is noteworthy that the lira lost about 40 percent of its value against the US dollar during the past year, declining by 29 percent during the current year only.

This happened after the success of the Central Bank of Turkey, which intervened, directly or indirectly, in stopping the deterioration of the Turkish currency, as the lira was subjected to a state-managed devaluation. This is despite the monetary stimulus policy pursued by the Central Bank, which reduced the interest rate during the current year from 14% to 9%.

TRY/USD Technical Analysis

On the technical front, the dollar pair settled against the Turkish lira during early trading this morning, at almost the same levels as yesterday’s closing. The pair maintained its trading within a limited range, which has been trading in its range for more than two months, specifically since mid-October. The USD/TRY  is trading above support levels, which are concentrated at 18.53 and 18.40, respectively.

On the other hand, the pair is trading below the resistance levels that are concentrated at the 18.72 level, which is the highest price for the pair recorded during 2022. The pair is also trading below the psychological resistance levels at 19.00. The USD/TRY trades above the moving averages 50, 100, and 200 on the daily time frame, in a sign of the general bullish trend of the pair. The price trades between these averages on the four-hour time frame, as well as the lower time frames, in a sign of the divergence recorded by the pair in the medium term. . Any drop in the pair represents an opportunity to buy back again. Please adhere to the numbers in the recommendation, while maintaining capital management.

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