USD/TRY Forex Signal: Trading Above the Moving Averages – 02 August 2022
Today’s recommendation on the lira against the dollar
Yesterday’s buy trade was activated, and half of the contracts were closed with the price rising towards the target and providing a stop loss point.
Best selling entry points
Entering a short position with a pending order from levels of 18.33Set a stop-loss point to close the lowest support levels at 18.55.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 17.70.
Best entry points buy
Entering a buy position with a pending order from levels of 17.85The best points for setting stop-loss are closing the highest levels of 17.54.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 18.31
Analysis of the Turkish lira
The price of the lira stabilized during today’s trading at the same levels as yesterday, after a repeated rise of the lira against the dollar, before losing those gains. The strong movement that the pair records repeatedly is reflected in an intervention by the Central Bank of Turkey in the market, which aims to stabilize the lira and prevent further losses. It does not seem that the economic conditions in the country are encouraging to record any kind of improvement in the price of the lira, with mounting criticism of the monetary policy pursued by the Turkish Central Bank. The latest criticism was from the head of the Istanbul Chamber of Industry, who said that the Turkish Central Bank severely restricts the credit granted to companies that are not even classified as major exporting companies. Analysts attributed this restriction to the decline in the size of the financial reserve of foreign currencies, which suffers from a lack of tools available to it to add any solutions to control the decline of the lira, especially in light of the high inflation, and adherence to a stimulus monetary policy.
On the technical front, the Turkish lira against the US dollar followed the same trading pattern that the pair has been following since last week. The lira stabilized at the peak recorded during the current year, after a temporary decline during yesterday’s trading. The intervention of the Turkish Central Bank in the strong movements of the pair appears on the pullbacks shown on the chart, before the pair’s rise returns. The pair is 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, indicating the bullish trend on the medium term. The pair is also trading above the rising trend line on the four-hour time frame, shown on the chart, at the same time, the pair is trading the highest support levels that are concentrated at 17.80 and 17.70 levels, respectively. While the lira is trading below the resistance levels at 18.00 and 18.32, respectively. We expect to re-record new highs, especially with every dip in the pair, which represents a buying opportunity. Please adhere to the numbers in the recommendation with the need to maintain capital management.
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