It is noteworthy that inflation in Turkey recorded record levels at the end of last year, as it recorded 85% during November 2022, before it recorded declines during December to levels of 64%.
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 support level at 18.75.
Early trading stabilized on Thursday morning after it recorded an all-time low against the US dollar on Wednesday. At the same time, the country’s stock markets rebounded after reopening this week as they benefited from the stock market supportive measures provided by the Turkish government.
The withholding tax on share buyback programs has been reduced to zero from 15% earlier, while the mandate of the General Assembly resolution to buy back shares has also been waived, allowing listed companies to start the programs with a board decision only. It is noteworthy that the Turkish Stock Exchange has benefited from the decline of the Turkish lira over the past years, as Turkish citizens preferred it as a haven to keep the value of their savings from falling, especially with the rise in inflation.
It is noteworthy that inflation in Turkey recorded record levels at the end of last year, as it recorded 85% during November 2022, before it recorded declines during December to levels of 64%. Meanwhile, the latest reports estimated the number of victims of the earthquake that struck the country at about 36,000, in addition to the displacement of more than 250,000 citizens from the affected areas, amid continuing promises of the Turkish president to rebuild the affected areas within one year.
TRY/USD Technical Analysis
On the technical front, trading of the dollar pair against the Turkish lira stabilized during Thursday’s early trading. This happened after the Turkish currency recorded new records of decline against the dollar yesterday, as it touched the 18.94 level. At the same time, the pair continued to trade within the levels of the ascending channel on today’s timeframe, as the pair’s bullish movement continued, albeit at a slow pace.
The dollar against the pound is trading above the support levels at 18.76, 18.70, and 18.63, respectively. At the same time, the pair is trading below the resistance levels at 18.88 and 18.94, which represents the highest price for the pair ever, and the pair is also trading below the psychological resistance levels at 19.00.
The USD/TRY is also trading above the moving averages 50, 100, and 200 on the daily time frame, while the price is trading between these averages on the four-hour time frame, in a sign of the general bullish trend for the pair. Any decline 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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