On the technical level, the dollar pair against the Turkish lira rose slightly, as the pair recorded its highest levels ever at 28.94 levels during early trading this morning.
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- Entering a buy deal with a pending order from the 28.70 level.
- Place a stop loss closing point below the support level at 28.60.
- 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 28.99.
- Entering a sell deal with a pending order from the 28.99 level.
- The best points to place a stop loss are closing the highest level of 29.15.
- 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 28.75.
The US dollar pair against the Turkish lira stabilized near its divorce highs, which it recorded during this week’s trading. The pair is approaching the correct figure of 29 lira per dollar. Despite the positive impact recorded by economic figures in Turkey as a result of the shift in monetary policy in the country, the price of the lira is still trading at low levels. In this regard, Finance Minister Mehmet Simsek commented that his country follows a free exchange rate system and does not interfere to determine the value of the lira. He also added that his country’s government does not target a specific price for the lira.
In other news, banking stocks in Turkey continued to rise following positive expectations from Bank of America, which expected Turkish banks in the private sector to benefit from the ongoing shift in monetary policy. Bank stocks rose significantly during the current month. The positive expectations include the increase in returns that these banks can achieve as a result of the recovery in interest rates on loans and deposits.
The country witnessed a major shift in the course of monetary policy about 5 months ago after the Turkish Central Bank raised interest rates through a series of successive meetings by about 32.5 percent. He also took many measures to limit demand and raise the volume of deposits on the lira, in conjunction with abandoning the system of the lira protected from exchange rate fluctuations.
On the technical level, the dollar pair against the Turkish lira rose slightly, as the pair recorded its highest levels ever at 28.94 levels during early trading this morning. The pair settled within the ascending price channel on the 240-minute time frame shown in the chart. If the pair declines, it will target the support levels concentrated at 28.75 and 28.55, respectively. On the other hand, if the price rises, it will target the resistance levels, which are concentrated at 28.99 and 29.15, respectively. Despite the pair’s rise, we notice a slowdown in the pace of those rises, as the pair trades below an upward trend line shown in the chart.
At the same time, the price is trading above the 50 and 200 moving averages on the daily time frame, as well as on the four-hour time frame, indicating the control of buyers within the general upward trend that the pair is recording in the long term. The change in monetary policy may prepare the pair to record an upward wave, but at a slower pace. Please adhere to the numbers in the recommendation, with the need to maintain capital management.
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