The lira declines before the decision on interest

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Recommendation of the day on the lira against the dollar

Risk 0.50%.

None of the buy or sell trades from the recommendation were activated yesterday

Best Selling Entry Points

  • Entering a short position with a pending order from the 16.40 levels
  • Set a stop loss point to close the lowest support levels 16.66.
  • 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 55 pips and leave the rest of the contracts up to the high resistance levels at 4:00 PM.

Best entry points to buy

  • Entering a long position with a pending order from the 15.99 levels
  • The best points to set the stop-loss close the highest levels of 15.78.
  • 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 55 pips and leave the rest of the contracts until the support level 16.60
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The Turkish lira continued its losses to become the worst performing currency in the current year. Investors are today awaiting the Turkish Central Bank’s decision on interest rates. No change is expected in the monetary policy of the bank, which is under the effective control of Turkish President Recep Tayyip Erdogan. The bank has been fixing the interest rate since last September, following a series of interest rate cuts that continued for several months. The Turkish Central Bank goes against the assumption of increasing interest rates to control the high inflation rate. During the poor economic data plaguing the country, the lira is not expected to see any improvement against the dollar, especially with the decline in real foreign currency reserves held by the Central Bank of Turkey.

On a technical level, the Turkish lira fell slightly against the dollar during today’s session, as the lira reached key resistance levels seen at the end of last year’s session. The pair also broke above the 50, 100, and 200 moving averages, respectively, over the four-hour as well as the 60-minute time frame. The pair is trading at the highest support levels which are concentrated at the 16.00 and 15.85 levels respectively. On the other hand, the lira is trading below the resistance levels at 17.11 and 18.39. We expect the lira to continue falling, especially if the pair closed above the resistance levels of 16.40. Please respect the numbers in the recommendation with the need to maintain capital management.

USD/TRY

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