Rose After Release of Inflation Data

On the technical level, the dollar pair against the Turkish lira rose slightly, as the pair is heading to retest the lower border of the ascending price channel on the four-hour time frame, which it broke during the last week after settling within it for several weeks.

Risk 0.50%.

• Entering a buy deal with a pending order from the 25.35 level.
• Place a stop loss closing point below the 24.95 level.
• Move the stop loss to the entry area and follow the profit as the price moves by 50 points.
• Close half of the contracts with a profit equal to 70 points and leave the rest of the contracts until the strong resistance level at 27.00.

• Entering a sell deal with a pending order from the 27.00 level.
• The best points to place a stop loss are closing the highest level of 27.65.
• Move the stop loss to the entry area and follow the profit as the price moves by 50 points.
• Close half of the contracts with a profit equal to 70 points and leave the rest of the contracts until the support level of 25.70.

The USD/TRY rose slightly during early trading on Monday morning, after the inflation data released this morning. The Turkish Statistical Office announced the acceleration of the inflation rate in the country, with the consumer price index rising on an annual basis to reach 58.9 percent in August, compared to 48 percent recorded in July, while analysts’ expectations indicated that inflation would rise to about 55 percent. Inflation also recorded a monthly increase of 9.1 percent. At the same time, the core inflation index rose by about 64.9 percent.

The Turkish Central Bank raised the interest rate in the country to 25 percent last month, which is higher than market expectations, but it appears that the tightening of monetary policy has been insufficient so far to control the rise in the consumer price index, which rose driven by the decline of the Turkish lira and the increase in government spending in the period. that preceded the Turkish elections. The Governor of the Turkish Central Bank, Hafiza Ghaya Arkan, issued her forecasts last month regarding inflation rates, which were pessimistic, as inflation was expected to rise to 60 percent during the current year.

On the technical level, the dollar pair against the Turkish lira rose slightly, as the pair is heading to retest the lower border of the ascending price channel on the four-hour time frame, which it broke during the last week after settling within it for several weeks. If the pair rises, it targets the resistance levels concentrated at 26.90 and 27.50, respectively, while if the pair declines, it targets the support levels concentrated at 26.00 and 25.70, respectively. The price is moving above the 50, 100, and 200 moving averages on the daily time frame, while the pair is trading between these averages on the four-hour time frame, as well as on the 60-minute time frame, indicating the divergence that the pair is recording in the short term.

The pair is expected to record some gains, targeting retesting the lower border of the price channel that the price broke before resuming the decline. Please adhere to the numbers in the recommendation, while maintaining capital management.

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