Recommendation of the day on the lira against the dollar

Risk 0.50%.

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 18.33
  • Set a stop-loss point to close the lowest support levels at 18.55.
  • Move the stop loss to the entry zone and continue profiting when the price moves 50 pips.
  • Close half of the contracts with a profit equal to 55 pips and leave the rest of the contracts up to the high resistance levels at 17.70.

Best entry points to buy

  • Enter a buy position with a pending order from 17.85 levels
  • The best points to set the stop-loss close the highest levels of 17.54.
  • Move the stop loss to the entry zone and continue profiting when the price moves 50 pips.
  • Close half of the contracts with a profit equal to 55 pips and leave the rest of the contracts until the support level 18.31
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Turkish lira analysis

The price of the lira stabilized during today’s session at the same levels as yesterday, after the lira repeatedly rose against the dollar, before losing those gains. The strong movement that the pair registers on several occasions is reflected in the intervention of the Central Bank of Turkey in the market, which aims to stabilize the lira and avoid further losses. It does not appear that the country’s economic conditions are encouraging to register any improvement in the price of the lira, with growing criticism of the monetary policy pursued by the Turkish Central Bank. The latest criticism comes from the head of the Istanbul Chamber of Industry, who said Turkey’s Central Bank is severely restricting credit to companies that are not even classified as major exporting companies. Analysts attributed the restriction to the decline in the size of the Foreign Exchange Financial Reserve, which suffers from a lack of tools at its disposal to add solutions to control the decline of the lira, especially in light of high inflation, and adherence to a stimulus monetary policy.

Technically, the Turkish Lira against the US Dollar followed the same trading pattern the pair has been following since last week. The lira stabilized at the current year high after a temporary dip in yesterday’s session. The intervention of the Turkish Central Bank in the strong movements of the pair appears on the pullbacks shown on the chart, before the rise of the pair returns. The pair is trading above the 50, 100 and 200 moving averages on the four-hour and 60-minute time frames respectively, indicating the medium-term bullish trend. The pair is also trading above the four-hour uptrend line shown on the chart, at the same time the pair is trading the highest support levels which are concentrated at 17 levels, 80 and 17.70, respectively. While the Pound is trading below the resistance levels at 18.00 and 18.32, respectively. We expect to re-register new highs, especially with every dip in the pair, which presents a buying opportunity. Please respect the numbers in the recommendation with the need to maintain capital management.

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