The USD/TRY has displayed another momentous day of upwards strength, this as confidence in the Turkish Lira has proven difficult to attain.
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If you have not looked at the value of the USD/TRY the past couple of days it might be an interesting endeavor to have a glance today. The USD/TRY continues to make resistance levels vulnerable and what was a steady trend upward over the long term, has turned into a rather rocket-fueled traverse the past two days. On Tuesday of this week, the USD/TRY was near the 21.45000 mark, as of this morning the Forex pair is near the 23.33700 ratio. And readers should check this listed price against the value of the USD/TRY as they read.
Speculators are urged not to bet blindly on the upwards momentum of the USD/TRY. While picking the currency pair to attain higher values is not exactly rocket science at this juncture, the costs of putting a Forex trade on in the USD/TRY could prove to be difficult. Traders need to understand all the fees that abound before merrily placing a buying position on the USD/TRY blindly.
Entry price orders are highly encouraged, so the existing difference in the bid and ask price on your broker’s platform doesn’t catch you unprepared. The use of conservative leverage and having a firm price target for profit should be used too. Traders need to wager only what they are willing to lose if the USD/TRY goes against them because there are still reversals lower within the currency pair which is a normal part of the day’s trading.
Having issued a warning about the dangers of the USD/TRY in a speculative manner on the retail level, it is time to mention financial institutions. It is clear that financial houses have lost confidence in the fiscal ability of the Turkish government to maintain the value of the Turkish Lira. The outcome of the recent election in which the leadership remained the same, apparently means that little in the way of fiscal policy change is going to occur. The direction of the USD/TRY has been higher for a long time and it appears the speed of the climb may grow.
To give you an idea of the momentum upwards in the USD/TRY, the 22.00000 to the 23.00000 level was completed in about five hours yesterday. This is a staggering loss of value for the Turkish Lira and is the type of result expected from countries with little to no confidence regarding fiscal controls.
- Traders should remain realistic regarding their price targets if they are able to trade the USD/TRY. Positions held overnight may carry substantial ‘carrying’ charges from your broker.
- The upwards traverse of the USD/TRY is not a laughing matter, and the people of Turkey are certainly going to feel the pressure regarding the loss of value in the Turkish Lira.
- However until fiscal policy change is implemented by the Turkish leadership and accepted by global financial institutions dealing with the USD/TRY, the currency pair will remain vulnerable to additional moves higher.
Current Resistance: 23.40000
Current Support: 23.19000
High Target: 25.10000
Low Target: 22.97000
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