Pound declines due to policy failure

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As the pair’s bullish momentum continues, the way is clear for the lira to hit the 16.63 levels.

Recommendation of the day on the lira against the dollar

Risk 0.50%.

The target day recommendation buy trade was activated and half of the contracts were closed with a profit, with the price moving in the direction of the target and moving the stop loss point to enter.

Best entry points to buy

  • Enter a long position with a pending order from current levels 15.85
  • Set a stop loss point to close the lowest support levels 15.65.
  • 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 16.05.

Best Selling Entry Points

  • Entering a short position with a pending order from the 16.00 levels
  • The best points to set the stop loss close the highest levels of 16.11.
  • 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 15.58
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The Turkish lira continues to slide against the dollar, which was ranked the third worst currency this year. The currency has suffered from the failed monetary policy of the Turkish Central Bank, which is under the control of Turkish President Recep Tayyip Erdogan. The lack of independence in the decisions of the Turkish Central Bank reduced the effectiveness of the tools it could resort to in the midst of poor economic data. As the expansion of the current account deficit coincided with the increase in the trade deficit, inflation reached levels not seen for decades, when it approached levels of 70%. At the same time, the Turkish Central Bank insists on not raising the interest rate, as it only fixed it after a series of cuts. This is contrary to the economic consensus that raising interest rates helps reduce inflation rates and helps currencies appreciate.

On the technical side, the Turkish lira continues to fall sharply against the dollar, with the pair continuing to climb above the 50, 100 and 200 moving averages, respectively, over the four-hour as well as the 60-minute timeframe. . Frame. The pair is also trading at the highest support levels, which are concentrated at the 15.38 and 15.30 levels respectively. On the other hand, the lira is trading below the resistance levels at 4:00 PM and 4:40 PM. As the bullish momentum of the pair continues, the way is open for the lira to reach the levels of 16.63, which it recorded at the end of last year, as it is the first major resistance level. Please respect the numbers in the recommendation with the need to maintain capital management.

USD/TRY

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