We expect the lira to decline until 14.34 levels.
Today’s recommendation on the lira against the dollar
Risk 0.50%.
The sell trade of the recommendation was activated yesterday, and a profit was exited with moving the stop loss point and closing half the contracts with the price moving towards the target
Best buy entry points
- Entering a long position with a pending order from levels of 13.65
- Place your stop-loss point below the 13.33 support levels.
- Move the stop loss to the entry area and continue to profit as the price moves by 50 pips.
- Close half of the contracts with a profit equal to 75 pips and leave the rest of the contracts until the strong resistance levels at 14.29.
Best selling entry points
- Entering a short position with a pending order from 14.15 levels.
- The best points to place the stop loss are above 14.39 levels.
- Move the stop loss to the entry area and continue to profit as the price moves by 50 pips.
- Close half of the contracts with a profit equal to 75 pips and leave the rest of the contracts until the support levels 13.70
The Turkish lira fell strongly against the dollar during yesterday’s trading. It continued to decline today amid the high demand for the dollar globally due to geopolitical turmoil. It declined as well as after Jerome Powell’s statements, who confirmed the interest rate hike during the current month. On the local level, some data were released that showed the continued rise in inflation in the country. The Turkish Statistical Office announced that the inflation in Istanbul, one of the largest Turkish cities, had reached its highest level in 20 years. Retail prices increased on a monthly basis by 4.4 percent, while inflation recorded an annual increase of 55.33 percent.
On the technical front, the Turkish lira against the dollar continued its losses to trade the highest resistance levels at 14 lira. As the pair continues to move within the framework of an ascending price channel shown on the chart, the pair is also trading below the resistance levels that are concentrated at 14.15 and 14.34 levels, respectively. On the other side, the pair is trading the highest support levels, which are concentrated at 13.72 and 13.66 levels, respectively. The pair is also trading above the 50, 100 and 200 moving averages, on the four-hour and daily time frames. We expect the lira to decline until 14.34 levels, which represent 50 Fibonacci levels for the last downside wave, which started at 12-20-2021 and ended on 12-23-2021. Please adhere to the numbers in the recommendation with the need to maintain capital management.
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