On the technical front, without major changes, the dollar pair traded against the Turkish lira, near its all-time high at 18.88 levels, which was recorded at the beginning of the week.
Today’s recommendation on the TRY/USD
The risk is 0.50%.
Best buying entry points
- Entering a buy order pending order from the 18.70 level.
- Place a stop loss point to close below the support level at 18.45.
- Move the stop loss to the entry area and follow the profit when the price moves by 50 pips.
- Close half of the contracts with a profit equal to 70 pips and leave the rest of the contracts until the strong resistance level at 19.00.
Best-selling entry points
- Entering a sell order pending order from the 19.00 level.
- The best points to place a stop loss close to the highest level of 19.15.
- Move the stop loss to the entry area and follow the profit when the price moves by 50 pips.
- Close half of the contracts with a profit equal to 70 pips and leave the rest of the contracts until the 18.75 support level.
The price of the TRY/USD stabilized during early trading on Wednesday morning. Investors were troubled by a report from the World Gold Council, which revealed that the Turkish Central Bank’s gold reserves rose to record levels. According to the statement, gold reserves in the central bank reached an all-time high, with 542 tons officially reported, an increase of 148 tons. At the same time, the report revealed the growth of Turkey’s demand for jewelry, as it increased by 32% annually in the last quarter of 2022.
The high demand of families for gold, which represents a safe hedging tool, is due to the high inflation in the country, which devours the value of citizens’ savings. The price of the precious metal denominated in the local currency increased by 40% on an annual basis. Last November, inflation reached a record high of 85%, before declining in September, reaching 64%. The performance of the Turkish economy is expected to improve, albeit not significantly, as a result of expectations of an increase in Turkish government spending during the few months ahead of the upcoming elections in Turkey, which may raise inflation levels again, according to the World Bank warns.
USD/TRY Technical Analysis
On the technical front, without major changes, the dollar pair traded against the Turkish lira, near its all-time high at 18.88 levels, which was recorded at the beginning of the week. The pair returned to trading in a limited range that the pair had settled at for several months, with the pair settling within the levels of the ascending channel on the time frame of today.
This reflects the upward movement of the pair, albeit at a slow pace. The USD/TRY is also trading above the moving averages 50, 100, and 200 on the daily time frame as well as on the four-hour time frame, in a sign of the general bullish trend for the pair. Currently, the dollar against the pound is trading above the support levels of 18.70, 18.60, and 18.53, respectively.
On the other hand, the pair is trading below the resistance levels at 18.83 and 18.88, which represents the highest price for the pair ever, and the pair is also trading below the psychological resistance level at 19.00. Any drop in the pair represents an opportunity to buy back again. Please adhere to the numbers in the recommendation, while maintaining capital management.
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