We expect the lira’s decline to continue.
Today’s recommendation on the lira against the dollar
Risk 0.50%.
None of the buying or selling transactions of yesterday were activated.
Best selling entry points
- Entering a sell position with a pending order from 17.41 levels
- Set a stop-loss point to close the lowest support levels 17.65.
- 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 55 pips and leave the rest of the contracts until the strong resistance levels at 16.40.
Best entry points buy
- Entering a buy position with a pending order from 17.00 levels
- The best points for setting the stop loss are closing the highest levels of 16.88.
- 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 55 pips and leave the rest of the contracts until the support levels 17.40
The Turkish lira stabilized without changes against the dollar during today’s trading, to complement yesterday’s divergence. The Turkish lira settled near its lowest level ever recorded during 2022. It is expected that the Ministry of Finance in Turkey will announce a new type of bond, which aims to attract more support for the local currency, which is facing great pressure. The announcement of the bonds coincides with the announcement of the interest rate in the United States of America, amid different expectations between raising the interest rate between 50 or 75 basis points. In other news, Turkey’s Ministry of Energy and Natural Resources today announced plans to re-explore the country’s old natural gas field in the Black Sea. These explorations will open new horizons, Turkish Energy Minister Fatih Donmez said, adding that “if we evaluate the work taking into account the depth of their implementation, this is likely to be one of the most difficult areas in the world.” It is noteworthy that energy prices are responsible for the largest increases in the volume of inflation recorded by the country, which reached its highest level in 24 years.
On the technical front, without major changes, the Turkish currency traded at the highest levels of 17 during today’s trading. The pair maintained its trading in a general bullish trend, with the pair trading the highest support levels, which are concentrated at 17.00 and 16.80 levels, respectively. The pair also continued trading above the moving averages 50, 100 and 200, respectively, on the four-hour time frame as well as on the 60-minute time frame. At the same time, the lira is trading below the resistance levels at 17.40 and 17.80, respectively. The level of 17.41 represents a strong resistance level. We expect the lira’s decline to continue, as every decline on the pair represents an opportunity to repurchase, especially if it crosses the mentioned resistance levels. Please adhere to the numbers in the recommendation with the need to maintain capital management.
