Turkish Currency Stable Amid Bank Interven

On the technical front, without major changes, the dollar pair stabilized against the Turkish lira during early trading this morning, as the pair traded below the integer number 27, which is its new all-time high, which it recorded during the previous week’s trading. 

The risk is 0.50%.

• Entering a buy order pending order from the 26.50 levels
• Place a stop loss point to close below the 26.25 level.
• 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 27.50.

• Entering a sell order pending order from the 27.50 level.
• The best points to place a stop loss close the highest level of 27.65.
• 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 26.50.

The trading of the TRY/USD during early trading this morning, amid the lack of reports affecting the movement of the Turkish lira. Currently, international reports suggest that government banks will return to pumping dollars into the markets, as the Turkish government seeks to achieve some balance on the price of the lira. The Central Bank of Turkey continued its monetary tightening policy after raising interest rates during last Thursday’s meeting, by 250 basis points, which is less than market expectations.

The Turkish Central Bank is also working to withdraw the cash available to commercial banks by approving some procedures that contribute to this transformation, as the Central Bank has amended some of the rules for the system introduced by the Turkish President, known as deposits protected from US currency fluctuations, with the aim of withdrawing about 400 billion liras from banks. Investors followed the Turkish president’s trip to the Arab Gulf states during the past week, where he succeeded in concluding trade and investment agreements that exceeded billions from the Kingdom of Saudi Arabia, the United Arab Emirates and the State of Qatar, which is likely to reduce the deficit faced by the country in foreign exchange reserves in the medium term.

On the technical front, without major changes, the dollar pair stabilized against the Turkish lira during early trading this morning, as the pair traded below the integer number 27, which is its new all-time high, which it recorded during the previous week’s trading. The pair is currently trading above the rectangle range that settled inside it about two weeks, to return to trading within a general bullish trend, while it is trading below other resistance areas concentrated between the levels of 27.12 and 27.50, and the pair is trading above the support levels that are concentrated at 26.26 and 26.00, respectively.

The price is moving above the moving averages 50, 100, and 200 on the daily timeframe, as well as on the 4-hour and 60-minute timeframes, in a sign of the strong bullish general trend. It is expected that the impact of the tightening by the Turkish Central Bank on the price of the lira, which analysts estimated to be around 29 liras per dollar, is expected to be delayed. Please adhere to the figures in the recommendation, while maintaining capital management.

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