We expect the lira to decline, targeting levels of 13.833, before resuming its rise against the dollar.
Today’s USD/TRY Signal
Risk 0.50%.
Activate the stop loss for yesterday’s short position
Best buy entry points
- Entering a long position with a pending order from 13.32 levels.
- Place your stop-loss point below the 13.18 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 13.79.
Best selling entry points
- Entering a short position with a pending order from 13.83 levels.
- The best points to place the stop loss above 13.99 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 13.30
The Turkish lira fell during today’s early trading with the dollar’s rise to its lowest level against the US currency since January 12th. Investors have embraced the dollar at the expense of emerging economies’ currencies amid rising tensions in Eastern Europe. The Russian president had announced the official recognition of the Donetsk and Luhansk People’s Republics, which ignited tensions between Russia and the West. Analysts expect the situation to escalate toward a Russian invasion of Ukraine with the escalation of sanctions by the United States and Europe. In such geopolitical tensions, investors tend to have safe haven currencies and gold at the expense of other financial assets.
On the technical level, the USD/TRY declined during today’s trading, stronger than usual, as the lira came out of the relatively narrow stable trading range within it for more than a month. The USD/TRY is trading above the ascending trend line on the four-hour time frame. The pair is also trading above the 50, 100 and 200 moving averages, respectively, on the daily time frame, the four-hour time frame, and the 60-minute time frame. The lira is trading the highest support levels at 13.61 and 13.51, respectively. On the other hand, the lira is trading below the resistance levels that are concentrated at 13.83 and 13.93, respectively. We expect the lira to decline, targeting levels of 13.833, before resuming its rise against the dollar. Please adhere to the numbers in the recommendation with the need to maintain capital management.
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