Price has room to fall to the 0.6800 area.

My previous signal last Monday produced a profitable long trade from the bullish rejection of the support level at 0.6882, but it barely gave the minimum 20 pips of profit so would have broken even in practise.

Today’s AUD/USD Signals

Risk 0.75%

Trades must be entered prior to 5pm Tokyo time Tuesday.

Short Trade Idea

Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 0.6884 or 0.6953.

• Place the stop loss 1 pip above the local swing high.
• Move the stop loss to break even once the trade is 20 pips in profit.
• Remove 50% of the position as profit when the price reaches 20 pips in profit and leave the remainder of the position to ride.

Long Trade Ideas

• Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 0.6797 or 0.6784.
• Place the stop loss 1 pip below the local swing low.
• Move the stop loss to break even once the trade is 20 pips in profit.
• Remove 50% of the position as profit when the price reaches 20 pips in profit and leave the remainder of the position to ride.

The best method to identify a classic “price action reversal” is for an hourly candle to close, such as a pin bar, a doji, an outside or even just an engulfing candle with a higher close. You can exploit these levels or zones by watching the price action that occurs at the given levels.

AUD/USD Analysis

I wrote in my previous forecast on 22^nd August that although the AUD/USD currency pair was rising, the price would probably turn bearish again later, not being able to get established above 0.6964.

This was a relatively good call as the dominant price movement for the day was downwards and the price never even reached 0.6964.

The Aussie stood out last week as the only major currency which ended the week slightly higher than the strong US Dollar. However, this currency pair fell sharply in favour of the Dollar just like every other pair did Friday after Powell’s hawkish speech at Jackson Hole strongly boosted the greenback, which has continued to advance since this week’s open. Interestingly, the Aussie has falled during Monday’s Asian session just as strongly as most other currencies, which suggests that any residual strength in the Aussie is being wiped out.

We have bearish momentum and this may slow down or even reverse, however the odds have to be that nothing will change sentiment and we will see further gains by the US Dollar later. The price here has room to fall, with no obvious key support levels until the round number at 0.6800.

I see a short trade from a bearish reversal following a bullish retracement to at least 0.6875 as potentially the most attractive trade setup we might see here today.

There is nothing of high importance due today regarding either the AUD or the USD.

Ready to trade our free Forex signals? Here are the best Forex brokers to choose from.

There is a possibility that the EUR/USD will continue falling as sellers target the next key support at 0.9850.

Bearish view

• Sell the EUR/USD and set a take-profit at 0.9850.
• Add a stop-loss at 1.0035.
• Timeline: 1-2 days.

Bullish view

• Set a buy-stop at 1.0025 and a take-profit at 1.0095.
• Add a stop-loss at 0.9950.

The EUR/USD price continued its bearish trend after a series of hawkish statements by the European Central Bank (ECB) and Federal Reserve officials. It dropped to a low of 0.9963, which was slightly lower than last week’s high of 1.0095.

Hawkish ECB and Fed

The EUR/USD resumed its bearish trend as investors reacted to last week’s Jackson Hole Symposium comments. In his speech, Jerome Powell reiterated that there will be some pain for both investors and consumers as it continued to battle the soaring inflation.

He said that the bank will continue with its hawkish tone until it sees a clear sign that inflation has started dropping. Data published this month showed that the headline inflation in the US dropped from 9.1% in June to 8.7% in July.

And on Friday, the closely watched PCE data showed that the country’s inflation continued dropping as gasoline prices pulled back. Therefore, analysts were expecting the Fed to start slowing down its hawkish tone in the coming meetings.

The EUR/USD price also dropped after several ECB officials reiterated that the bank will continue hiking rates in the coming months. Speaking at the Jackson Hole Symposium, Isabel Schnabel and Francois Villeroy Galhau said that a large sacrifice will be needed to tame inflation.

The two officials believe that the bloc’s inflation will continue soaring in the coming months. Analysts expect that the bloc’s inflation rose to a record 9% in August as gas prices surged. European gas prices rose to a record high of 343 euros per megawatt hour, which is sharply higher than where they were when the year started.

As a result, the EU will convene an emergency meeting to deliberate on the way forward since these prices mean that the bloc will likely head to a deep recession.

EUR/USD forecast

The four-hour chart shows that the EUR/USD pair has been in a strong bearish trend in the past few weeks. It managed to move below parity level for the second time this year last week. As a result, the pair remains below the 25-day and 50-day moving averages and is slightly above last week’s low of 0.9903.

The EUR/USD pair has also formed what looks like an inverted cup and handle pattern. Therefore, there is a possibility that it will continue falling as sellers target the next key support at 0.9850.

Ready to trade our free Forex signals? Here are the best Forex brokers to choose from.

EUR/USD

The EUR/USD has gone back and forth during the week, as we continue to hang around the parity level. At this point, it looks like we are taking a bit of a pause, but I think have to look at this through the prism of “fading short-term rallies” going forward. The market has gotten down to this level rather quickly, but now Jerome Powell has reiterated the hawkish attitude of the Federal Reserve, it’s likely that we will continue to see the US dollar reign supreme. I like fading rallies, especially near the 1.03 level if we get all the way up there.

GBP/USD

The GBP/USD initially tried to rally during the trading week but gave back gains as we continue to see a lot of negativity when it comes to the British pound, as the Bank of England has already stated that the United Kingdom is going into a recession. Because of this, the market is likely to continue fading rallies, and maybe even worse off than the Euro. If we were to break above the 1.20 level, then you might be able to make an argument for something else. Until then, this looks very bearish to me.

USD/JPY

The USD/JPY has pulled back slightly to kick off the week but then ended up rallying yet again. It looks as if we are eventually going to try to break above the recent highs, perhaps breaking through the ¥140 level. The ¥132 level underneath continues to be significant support, so I do like the idea of any pullback being bought into. If we break down below the ¥132 level, then we start to have other questions asked at that point. If the Bank of Japan continues to fight rising interest rates, this more likely than not will continue to be a “one-way trade.”

AUD/USD

The AUD/USD initially tried to rally during the week but gave back a lot of the gains at the 0.70 level. The market has seen a lot of volatility, and a lot of resistance at the 0.70 level. If we can break above the 0.70 level, then it is possible that we could go looking to the 50 Week EMA. However, it looks more likely than not that we are going to threaten the lows again after the Federal Reserve has spoken.

Ready to trade our weekly Forex forecast? Here are the best Forex brokers to choose from.

Bitcoin is still finding buyers close to $20k.

Previous BTC/USD Signal

My previous signal on 18th August was not triggered as there was no bullish price action when the support levels which I had identified were first reached that day. Unfortunately, the high of the day was just below the nearest resistance level.

Today’s BTC/USD Signals

Risk 0.50% per trade.

Trades must be taken prior to 5pm Tokyo time Friday.

Long Trade Ideas

• Long entry after a bullish price action reversal on the H1 timeframe following the next touch of $20,754 or $20,381.
• Put the stop loss $100 below the local swing low.
• Move the stop loss to break even once the trade is $100 in profit by price.
• Remove 50% of the position as profit when the trade is $100 in profit by price and leave the remainder of the position to ride.

Short Trade Ideas

• Short entry after a bearish price action reversal on the H1 timeframe following the next touch of $22,713, $23,163, or $23,609.
• Put the stop loss $100 above the local swing high.
• Move the stop loss to break even once the trade is $100 in profit by price.
• Remove 50% of the position as profit when the trade is $100 in profit by price and leave the remainder of the position to ride.

The best method to identify a classic “price action reversal” is for an hourly candle to close, such as a pin bar, a doji, an outside or even just an engulfing candle with a higher close. You can exploit these levels or zones by watching the price action that occurs at the given levels.

BTC/USD Analysis

I wrote in my previous analysis on 18th August that the price of BTC/USD was prone to a bearish reversal, with the resistance level at $23,609 looking attractive for a short trade as it had become likely “role reversal” resistance so would probably be likely to hold if reached. I was also interested in a long trade from the support level at $22,713.

Neither of these opportunities set up, with the high of the day unfortunately just a little below $23,609.

As it happened, during the later Asian session, the price broke down from its medium-term bullish price channel, finding a bottom just above the support level at $20,754.

The price has been consolidating since then above this supportive area, making a weakly bullish pattern of higher lows.

The price has room to rise and seems unwilling to fall further, with no key resistance levels overhead until $22,713.

Traders today might look to buy a bullish breakout above $21,900 / $22k, or alternatively hope for a retracement to the support level at $20,754 and go long following a bullish rejection there.

With today’s Jackson Hole symposium, it feels like we may see a major reversal in the US Dollar and a boost for riskier assets, which suggests upward price movement for Bitcoin.

Concerning the US Dollar, there will be a release of Preliminary GDP at 1:30pm London time, followed later by the start of the Jackson Hole symposium and Fed Chair Powell’s speech.

Ready to trade our free daily Forex trading signals? We’ve shortlisted the best MT4 crypto brokers in the industry for you.

The pair will likely resume the bearish trend as sellers target the next key psychological level at 0.6800.

Bearish view

• Sell the AUD/USD pair and set a take-profit at 0.6800.
• Add a stop-loss at 0.7000.
• Timeline: 1 day.

Bullish view

• Set a buy-stop at 0.6965 and a take-profit at 0.7048.
• Add a stop-loss at 0.6880.

The AUD/USD price rebounded slightly as the recent US dollar rally took a breather. It rose to a high of 0.6963, which was the highest point since August 17. That price was about 1.17% from its lowest level this week.

US dollar rally takes a breather

The Australian dollar has pulled back recently amid a sustained US dollar comeback. The closely watched dollar index managed to move from this month’s low of $104.3 to over $109.30. This rally accelerated after the Federal Reserve published the minutes of the last meeting. These minutes showed that the bank was committed to continuing with the hiking process.

However, data published recently could see the bank reducing the pace of tightening. For example, on Tuesday, numbers released by S&P Global showed that the services PMI declined to 44.1 in August as demand waned and cost of doing business rose. A PMI reading of 50 and below is usually a sign that an industry is contracting.

Meanwhile, new home sales declined by 12.6% in July to 511k. This decline was worse than the median estimate of 575k. These numbers, together with the pending and existing home sales, imply that the housing sector is cooling down.

The AUD/USD price has also been in a downward trend because of the weakening Chinese economy. On Monday, the country’s central bank decided to slash interest rates in a bid to stimulate the economy. It slashed the five-year prime mortgage rate to 4.3%.

The deteriorating Chinese economy will have a negative impact on Australia. For one, analysts expect that iron ore prices will drop by half by next year because of the deteriorating housing sector in China. Analysts also expect that the Chinese economy will have a slower growth than the 5.5% that the government expects.

AUD/USD forecast

The AUD/USD slipped to a low of 0.6865 on Tuesday and then bounced back slightly after the weak US data. This price was an important one since it was the lowest point since August 5.

It has struggled moving below the support level several times since Monday. The pair is slightly above the 38.2% Fibonacci Retracement level while the MACD has tilted upwards. The pair will likely resume the bearish trend as sellers target the next key psychological level at 0.6800.

Ready to trade our free Forex signals? Here are the best Forex brokers to choose from.

EUR/USD plummets to new 19-year low.

My previous EUR/USD signal last Wednesday produced a losing short trade from $1.0195, although the same level was later rejected to provide the high of the day, so I was correct about that resistance level.

Today’s EUR/USD Signals

Risk 0.75%.

Trades may only be entered between 8am and 5pm London time today.

Short Trade Idea

• Go short following a bearish price action reversal on the H1 timeframe immediately upon the next touch of $0.9950 or $1.0000.
• Place the stop loss 1 pip above the local swing high.
• Move the stop loss to break even once the trade is 20 pips in profit.
• Take off 50% of the position as profit when the price reaches 50 pips in profit and leave the remainder of the position to run.

Long Trade Ideas

• Go long following a bullish price action reversal on the H1 timeframe immediately upon the next touch of $0.9900, $0.9850, or $0.9800.
• Place the stop loss 1 pip below the local swing low.
• Move the stop loss to break even once the trade is 20 pips in profit.
• Take off 50% of the position as profit when the price reaches 20 pips in profit and leave the remainder of the position to run.

The best method to identify a classic “price action reversal” is for an hourly candle to close, such as a pin bar, a doji, an outside or even just an engulfing candle with a higher close. You can exploit these levels or zones by watching the price action that occurs at the given levels.

EUR/USD Analysis

In my last analysis of the EUR/USD currency pair on 17th August, I saw the technical picture as more bearish following the breakdown below the ascending trend line, which was confluent with a clear level of resistance at $1.0195, which was also quite confluent with the round number at $1.0200. I saw a short from there as the best potential trade of the day and I was not wrong, although the initial rejection during the New York session saw the high exceeded again later.

The technical picture now is even more bearish, as the price plummets through blue sky to new 19-year lows which have not been seen since 2022, well below parity.

There are no obvious support levels, except perhaps round and half numbers.

There is strong bearish momentum, and longer-term traders could have a good opportunity to go short if we see a bullish retracement to $0.9950 or even the parity level at $1.0000.

Shorter-term traders can try to ride the momentum by selling rallies on short-term time frames, perhaps being cautious of trading right into any major round numbers.

Trend traders will not want to miss the bearish momentum here.There is a very strong bullish market and long-term trend in the US Dollar, with the Euro one of the weakest major currencies (the British Pound is the other), so we can expect plenty of action here today as this pair is in the market’s focus.

Concerning the USD, there will be a release of Flash Services PMI data at 2:45pm London time. Regarding the EUR, there will be releases of French, German, and British PMI data between 8:15am and 9:30am.

Ready to trade our daily Forex signals? Here’s a list of some of the best Forex trading platforms to check out.

The USD/ZAR has been caught in a flurry of bullish activity and a retest of highs seen in the second and third week of July is underway.

As of this writing the USD/ZAR is traversing around the 17.00000 mark with rather strong buying action demonstrating the capability of holding ground.  On the 16^th of August the USD/ZAR currency pair was near the 16.34000 level with what appeared rather tranquil conditions. However a burst of buying activity began the following day, this upon the publication of the U.S Fed Meeting Minutes which left a sour taste in the mouth of financial analysts and caused a storm to grow.

Lack of Clarity from U.S Federal Reserve Hitting Forex, Including the USD/ZAR

In the past couple of weeks of trading, the USD/ZAR had begun to reflect a potential return to bearish conditions. Highs achieved in the middle of July when the USD/ZAR was trading above the 17.00000 appeared to be in the rear view mirror. Selling flourishes were demonstrated, and on the 10^th through the 15^th of August lows of nearly 16.15000 came within sight a few times.

The deliverance of sudden buying in the USD/ZAR which began to strike with strength this past Thursday has been maintained.  From a technical perspective once the 16.65000 to 16.70000 ratios were proven vulnerable, resistance levels became challenged with rapid fire and the 17.00000 was broken through on Friday. Technical traders may be tempted to believe the USD/ZAR is too high, but they should note the forex pair did touch 17.25000 and higher from the 14^th until the 21^st of July a handful of times.

Storm Waters Churning and a Sudden Calm may be Difficult to Attain for the USD/ZAR

• The USD/ZAR is mirroring the results of other major currency pairs as the USD has developed strength the past few days.
• While it may be tempting to believe higher values in the USD/ZAR will fade, support near the 16.95000 to 16.90000 ratios should be watched. If these values hold, some traders may believe another wave of buying could develop in the near term.

Visions of a calm end to the month of August have been destroyed in Forex and the USD/ZAR will see more volatility too.  It is clear the U.S Fed will raise interest rates again in September, and now it appears some financial houses believe another wave of interest rate hikes will follow. Clarity is in short supply and while technical considerations may attract bearish speculators, being contrarian and selling the USD/ZAR in the near term could prove to be dangerous. Choppy conditions appear ready to remain intact this coming week

USD/ZAR Short Term Outlook:

Current Resistance: 17.04000

Current Support: 16.94000

High Target: 17.19000

Low Target: 16.82000

Ready to trade our Forex daily forecast? We’ve shortlisted the best Forex brokers in the industry for you.

 

The difference between success and failure in Forex / CFD trading is very likely to depend mostly upon which assets you choose to trade each week and in which direction, and not on the exact methods you might use to determine trade entries and exits. 

So, when starting the week, it is a good idea to look at the big picture of what is developing in the market as a whole, and how such developments and affected by macro fundamentals, technical factors, and market sentiment. Read on to get my weekly analysis below.

Fundamental Analysis & Market Sentiment

I wrote in my previous piece on 14^th August that the best trades for the week were likely to be:

• Looking for short-term long trades in the S&P 500 Index during periods of short-term bullish momentum. However, we did not really see any bullish momentum here last week.

The news is currently dominated by the FOMC meeting minutes which were released last week, showing that the Fed remains determined to continue hiking rates until inflation is brought considerably lower, and that Fed members are worried about the economic impact of the ongoing rate hikes. Recent inflation data released in the US and Canada showed inflation slowing, but inflation in the UK was revealed last week to be still increasing, now standing there at an annualized rate of 10.3%. The shift is sentiment is towards risk-off, which has had the effect of knocking down stocks, commodities, and cryptocurrencies, and strongly boosting the US Dollar, mostly at the expense of the commodity currencies NZD, AUD, and CAD.

It is worth pointing out that although the US stock market had been rising in recent week, the US stock market has technically been in a bear market for some time, with the US yield curve being inverted for several weeks now. The US is also arguably in a recession, having seen two successive quarters of GDP contraction, although wages growth and the job market remain relatively buoyant.

To recap there were a few other important economic data releases last week apart from the FOMC meeting minutes. The results were as follows:

1. UK CPI data – an annualized rate of inflation of 10.3% was reported compared to the rate of 9.8% which had been expected.
2. Canadian CPI data – a month-on-month increase of only 0.1% was reported, which had been expected.
3. Reserve Bank of New Zealand Official Cash Rate, Rate Statement, and Monetary Policy Statement – the RBNZ hiked its rate of interest by 0.50% to 3.00%, the highest rate of any major currency, and signaled a more hawkish tightening path over the coming months.
4. Australian Monetary Policy Meeting Minutes – the RBA signaled an intent to take further tightening steps but did not define the path clearly.
5. US Retail Sales data – the core data came in more strongly than had been expected, showing a month on month increase of 0.4% when a decrease by 0.1% had been widely forecast.
6. Australian Unemployment data – there was a net loss of approximately 40k new jobs when a gain had been expected, but the headline unemployment rate fell to 3.4%.

The Forex market saw a strong rise by the US Dollar last week. The rise was broad but especially strong against the commodity currencies, especially the New Zealand Dollar.

Rates of coronavirus infection globally dropped last week for the fifth consecutive week. The most significant growths in new confirmed coronavirus cases overall right now are happening in South Korea, Moldova, the Marshall Islands, and Tonga.

 

The Week Ahead: 22^nd August – 26^th August 2022

The coming week in the markets is likely to show a lower level of volatility compared to last week, although there will be a release of preliminary GDP data for the US that could move the market despite the low level of important data releases due. Releases due are, in order of likely importance:

1. US Preliminary GDP data
2. US Core PCI Price Index data
3. US, UK, German, and French Flash PMI data
4. Jackson Hole Symposium (central bankers)

Technical Analysis

U.S. Dollar Index

The weekly price chart below shows the U.S. Dollar Index printed a long, strongly bullish candlestick which closed right on its high, in line with the long-term trend, which is bullish. The weekly closing price is a 20-year high, and the week’s strong rise came after the price rejected the support level below just under 105.00. These are all very strong bullish signs.

It will probably be a good idea to look for long trades in the US Dollar over the coming week. This is a very powerful, long-term bullish trend in the most important currency in the Forex market, and it remains likely to continue as long as sentiment remains driven by the fear of ongoing interest rate hikes negatively impacting risky assets, with the US Dollar acting as a primary safe haven.

GBP/USD

Last week saw the GBP/USD currency pair print a large, bearish engulfing candlestick. The British Pound was not one of the biggest losers against the strong US Dollar over the week, but this pair is technically interesting as it printed the lowest weekly close seen since the coronavirus panic in March 2020.

The price briefly traded below $1.1800 on Friday before closing a little higher than that.

The British Pound is beset by fundamental woes, including new increased inflation figures above 10%, and a Bank of England forecast of a coming recession which will last for five quarters and see GDP shrink by 2.2%.

The strength of the US Dollar and the technical breakdown we see here, plus fundamental headwinds against the Pound, see a short trend trade opportunity in this currency pair. However, it is important to use relatively tight stop losses for the British Pound, as using ATR 1 has over the years produced much better results than the more typical ATR 3.

NZD/USD

The New Zealand Dollar was the biggest loser of all major currencies last week, despite the RBNZ’s rate hike by 0.50% to 3.00%, the highest rate of any major currency. However, there was no technical breakdown below recent support.

It is notable that the price closed right on the low of the week, which is a bearish sign.

There may be further bearish momentum in the NZD/USD currency pair over the coming week, with all the commodity currencies weak and the NZD weakest of all showing this can be an interesting currency on the short side.

Natural Gas

Although we are seeing a bearish market with most commodities and risky assets shrinking against safe havens such as the US Dollar, we have seen Natural Gas gain strongly over the past week to make new multi-year highs.

Volatility is very high and price movement can be extremely choppy.

Long natural gas can be an attractive trend trade as we are seeing a breakout in the price chart. However, anyone trading natural gas should be very, very mindful of the extremely high level of volatility we have seen here over recent months, and trade very small position sizes which respect the volatility.

As commodities in general and energies are quite weak, I do not have very strong faith in a long trade here, which is another reason to keep the position size very small if you are trading natural gas over the coming week.

 

Bottom Line

I see the best opportunities in the financial markets this week as likely to be:

1. Short of the GBP/USD currency pair, and
2. Long of Natural Gas.

Ready to trade our weekly Forex forecast? Here are the best Forex brokers to choose from.

EUR/USD

The Euro has been pummeled during the week, as it looks like we are going to put a serious threat on the parity level. If we break down below the parity level, then the market is likely to go much lower, perhaps down to the 0.98 level. A short-term rally is possible, but I think the 1.03 level will offer a significant amount of resistance. Any rally at this point in time that shows signs of exhaustion will be an opportunity to start shorting and picking up “cheap US dollars.”

GBP/USD

The British pound has broken down significantly during the week, as we continue to see the US dollar act like a wrecking ball against almost everything. Any rally at this point in time will continue to see a lot of selling pressure, so I think that much like the Euro, I think you are likely to see people willing to pick up “cheap US dollars” on any rally. It’s obvious that people are starting to worry about the central bankers next week spoke in the market as they will continue to talk about massive amounts of interest rate hikes. On the downside, the market could go all the way down to the 1.15 level.

USD/CAD

The US dollar has rallied a bit during the course of the week, to test the 1.30 level. The 200 Week EMA sits just below, just as the 50 Week EMA is starting to turn toward it. At this point, it’s likely that we will continue to see little bits and pieces of support, but this is a market that continues to see a lot of noisy behavior, as we are trying to grind higher based upon the overall uptrend as defined by the channel that we have been in.

USD/JPY

The US dollar has rallied rather significantly during the trading week, to break above the 1.37 level at one point. However, we have seen a lot of noise since then, and have pulled back. Nonetheless, we are still very bullish, so I think at this point in time we are going to look at a market that continues to be more or less a “buy on the dip” attitude, with the ¥132 level underneath offering significant support. Ultimately, this is a market that I think will continue to be very noisy, with the bond markets having a major influence.

 

Today’s recommendation on the lira against the dollar

• Risk 0.50%.
• None of the buy or sell transactions of yesterday were activated

Best selling entry points

Entering a short position with a pending order from levels of 18.33

• Set a stop-loss point to close the lowest support levels at 18.55.
• 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 55 pips and leave the rest of the contracts until the strong resistance levels at 17.70.

Best entry points buy

Entering a buy position with a pending order from levels of 17.85

• The best points for setting stop-loss are closing the highest levels of 17.54.
• 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 55 pips and leave the rest of the contracts until the support levels 18.31

Analysis of the Turkish lira

The price of the USD/TRY only moved slightly during today’s early trading, the dollar had risen near levels of 18 lira yesterday, before the pair returned to stability below this level. The dollar rose against the major currencies during yesterday’s trading after the announcement of the FOMC meeting minutes, which showed the possibility that the Fed will start moving interest rates at a slower pace depending on the circumstances and economic data. Some Fed members also saw the possibility of keeping the interest rate at elevated levels for a period of time even as inflation began to be brought under control.

Despite the dollar’s gains against most major currencies and emerging market currencies, the US currency did not move only slightly against the lira, as observers attributed the intervention of the Turkish Central Bank directly to impose a kind of stability for the lira price. It is noteworthy that the Turkish Central Bank is suffering from a decline in the volume of foreign exchange, but the bank has received support of several billions from Russia within the project to establish a nuclear plant in the country.

Turkish Lira Technical Outlook

On the technical front, the US dollar against the Turkish lira settled without changes within the same narrow trading range shown on the chart. The pair traded the highest support levels, which are concentrated at 17.85 and 17.75 levels, respectively. While the lira is trading below the resistance levels at 18.00 and 18.07, respectively. The pair is also trading above the 50, 100 and 200 moving averages, respectively, on the four-hour time frame as well as on the 60-minute time frame, indicating the long-term bullish trend. The chance of the lira rising against the dollar is still slim as the pair is heading in an overall bullish trend. As each decline of the pair represents a good buying opportunity, please adhere to the numbers in the recommendation, with the need to maintain capital management.

Ready to trade our daily Forex analysis? We’ve made a list of the best Forex brokers worth trading with.