Limited Rise after US Inflation Data

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We expect the lira to fluctuate within the current range without major changes.

Today’s recommendation on the lira against the dollar

Risk 0.50%.

Yesterday’s purchase order was activated, and the deal is still in circulation

Best buy entry points

  • Entering a long position with a pending order from 14.50 levelsSet a stop loss point to close the lowest support levels 14.36.
  • Move the stop loss to the entry area and continue to profit as the price moves by 50 pips.
  • Close half of the contracts with a profit equal to 75 pips and leave the rest of the contracts until the strong resistance levels at 14.85.

Best selling entry points

  • Entering a short position with a pending order from 14.86 levels
  • The best points for setting the stop loss are closing the highest levels of 14.98.
  • Move the stop loss to the entry area and continue to profit as the price moves by 50 pips.
  • Close half of the contracts with a profit equal to 75 pips and leave the rest of the contracts until the support levels 14.40
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The Turkish lira rose slightly during trading yesterday, Tuesday, despite US data that showed a rise in inflation, which was supposed to cast a shadow on the dollar. The dollar was expected to rise in light of expectations of tightening US monetary policy to control inflation expectations. However, the high inflation figure, which came less than expected, contributed to the decline of the dollar and thus the rise of emerging market currencies. Meanwhile, local reports reviewed the rise in inflation in Turkey to its highest level in twenty years, figures attributed by the Turkish President to the rise in global energy prices due to the war in Ukraine, but he did not mention the interest rate cut in Turkey, as well as the falling lira. Unofficial forecasts indicate that the Turkish lira will continue to decline until the end of this year. This is in contrast to official statements by the Turkish Finance Minister, who promised to reduce inflation and increase the price of the lira at the same time.

On the technical front, the Turkish lira increased against the dollar during yesterday’s trading, as the pair reached the bottom recorded at the end of last month. In general, the US dollar against the dollar continued to trade within a narrow trading range. The pair is currently trading below the descending trend line on the 240-minute time frame, shown on the chart. The pair also varied around the 50, 100 and 200 moving averages, respectively, on the four-hour time frame, while the pair fell above those averages on the 60-minute time frame. The pair is trading the highest support levels that are concentrated at 14.50 and 14.25 levels, respectively. On the other hand, the lira is trading below the resistance levels at 14.76 and 14.85, respectively. We expect the lira to fluctuate within the current range without major changes. Please adhere to the numbers in the recommendation with the need to maintain capital management.

USD/TRY

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