We expect the lira’s decline to continue.
Today’s recommendation on the lira against the dollar
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 against the US dollar during today’s early trading Wednesday. Investors followed reports published via Bloomberg that showed government plans to gradually raise the price of electricity throughout the year to avoid a strong rise like what happened at the beginning of this year. This shows that inflation in the country will not decrease in the short term. The rise in energy imports led to raising the inflation rate in the country to record levels not recorded in 24 years. Erdogan’s government is facing difficulties about before the elections scheduled for next year. The Turkish lira lost about 22 percent, compared to a 44 percent loss of its value last year. This prompted the government to ask Parliament for a supplementary budget.
On the technical level, the Turkish lira traded unchanged against the dollar. It traded within a narrow range shown on the chart. The pair maintained the general upward 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 50, 100 and 200 moving averages, respectively, on the four-hour time frame, while the price traded between the same averages on the 60-minute time frame, indicating a divergence in the short term. 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.