Inflation reaches its highest level in 20 years

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We expect the lira to decline to the 14.34 levels.

Recommendation of the day on the lira against the dollar

Risk 0.50%.

The sell trade of the recommendation was activated yesterday, and a profit was taken by moving the stop loss point and closing half of the contracts with the price approaching the target

Best buy entry points

  • Entering a long position with a pending order from levels of 13.65
  • Place your stop-loss point below the support levels of 13.33.
  • Move the stop loss to the entry zone and continue profiting when the price moves 50 pips.
  • Close half of the contracts with a profit equal to 75 pips and leave the rest of the contracts up to the high resistance levels at 14.29.

Best Selling Entry Points

  • Entering a short position with a pending order from the 14.15 levels.
  • The best points to place the stop loss are above the 14.39 levels.
  • Move the stop loss to the entry zone and continue profiting when the price moves 50 pips.
  • Close half of the contracts with profit equal to 75 pips and leave the rest of the contracts until the support level 13.70
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The Turkish lira fell sharply against the dollar during yesterday’s session. It continued to decline today amid strong demand for the dollar around the world due to geopolitical unrest. It fell as well as after the statements of Jerome Powell, who confirmed the rise in interest rates during the current month. At the local level, some data was released which showed the continued rise in inflation in the country. The Turkish Statistical Office has announced that inflation in Istanbul, one of Turkey’s largest cities, has reached its highest level in 20 years. Retail prices increased on a monthly basis by 4.4%, while inflation recorded an annual increase of 55.33%.

On the technical side, the Turkish lira against the dollar continued its losses to trade the highest resistance levels at 14 lira. As the pair continues to move within an ascending price channel shown on the chart, the pair is also trading below resistance levels which are concentrated at the 14.15 and 14.34 levels, respectively. On the other side, the pair is trading at the highest support levels, concentrated at 13.72 and 13.66 respectively. The pair is also trading above the 50, 100 and 200 moving averages, on the four-hour and daily time frames. We expect the lira to decline to 14.34 levels, which represent 50 Fibonacci levels for the last bearish wave, which started on 2021-12-20 and ended on 2021-12-23. Please respect the numbers in the recommendation with the need to maintain capital management.

USD/TRY

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