On the technical level, the dollar pair rose against the Turkish lira, recording its highest level ever during early trading this morning.
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- Entering a buy deal with a pending order from the 27.75 level.
- Place a stop loss closing point below the 27.55 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 28.00.
- Entering a sell deal with a pending order from the 25.28 level.
- The best points to place a stop loss are closing the highest level of 28.39.
- 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 27.90.
The price of the lira declined against the US dollar during early trading on Thursday morning, as the Turkish currency recorded its new lowest level ever against the US dollar during Asian trading. Investors are awaiting the expected interest rate decision today, as a number of financial institutions and investment banks issued their expectations for the interest rate hike that may be approved by the Monetary Policy Council of the Turkish Central Bank today. Goldman Sachs had issued its forecasts earlier this week, as the bank’s analysts expected that interest rates would be raised by only 250 basis points, bringing the key interest rate to 32.5 percent, while other expectations were higher than these estimates, as bank analysts said Societe Generale said they expect to raise interest rates by 300 basis points, bringing the country’s main interest rate to 33 percent. Finally, Deutsche Bank in Germany and Medley Advisors agreed to raise the interest rate by 500 basis points, bringing the main interest rate to 35 percent.
The Turkish Central Bank has expanded interest rate hike rates over the past four months as part of the bank’s plan to control inflation. Interest rates were raised from 8.5% at the beginning of June to 30% levels at the present time, with continued expectations of an increase in those rates.
On the technical level, the dollar pair rose against the Turkish lira, recording its highest level ever during early trading this morning. The pair recorded levels of 28.30, after breaching the correct figure of 28.00 during last week’s trading. The pair maintained its movements within an ascending price channel on the 240-minute time frame shown in the chart.
Currently, if the pair goes up, it targets the resistance levels concentrated at 28.50 and 28.75, respectively, while if the pair declines, it targets the support levels concentrated at 27.99 and 27.70, respectively. The price is moving 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 and the general upward trend recorded by the pair. The pair is expected to record gains as long as it settles within the ascending price channel range. Please adhere to the numbers in the recommendation, while maintaining capital management.
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