Lira Declines After Inflation Data

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We expect the pair to rise from the levels specified in the recommendation. 

Today’s recommendation on the lira against the dollar

Risk 0.50%.

The buy trade of the recommendation was activated on Thursday, and a profit was made with closing half of the contracts with the introduction of the stop loss

Best selling entry points

  • Entering a short position with a pending order from levels 17.45
  • Set a stop loss point to close the lowest support levels 17.65.
  • Move the stop loss to the entry area and continue to profit as the price moves by 50 pips.
  • Close half of the contracts with a profit equal to 55 pips and leave the rest of the contracts until the strong resistance levels at 16.40.

Best entry points buy

  • Entering a long position with a pending order from 16.81 levels
  • The best points for setting the stop loss are closing the highest levels of 16.44.
  • Move the stop loss to the entry area and continue to profit as the price moves by 50 pips.
  • Close half of the contracts with a profit equal to 55 pips and leave the rest of the contracts until the support levels 17.11
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The Turkish lira fell during the early trading today, as the markets absorbed the impact of the data released yesterday, which showed the rise in inflation in the country to record levels approaching 80 percent. The CPI rose 78.6% during June compared to the same month last year, as rising energy imports and the cost of food and drink led the index’s rise. The bad economic data appears to be able to swallow any limited gains for the lira after any action by the Turkish government and the country’s central bank. Despite last week’s gains, the lira lost most of those gains, with bad data coming in. Analysts attributed the main flaw in the policy of the Turkish Central Bank, which insists on following a stimulus policy unlike most central banks around the world, which is reflected in the lira, which is struggling for stability despite the indirect and direct interventions of the Turkish Central in the market.

On the technical front, the Turkish lira fell against the US dollar, the pair exited to trade from a narrow range, which is shown in the ascending channel on the four-hour time frame shown on the provided chart, as it broke the upper boundary of the channel. At the same time, the pair settled above the support levels that are concentrated at 16.70 and 16.48 levels, respectively. At the same time, the lira is trading below the resistance levels at 17.11 and 17.40, respectively. The pair traded above the moving averages 50, 100, and 200, respectively, on the four-hour time frame, as well as on the 60-minute time frame, indicating the bullish trend over the medium term. At the same time, the pair is trading the highest strong resistance levels represented in the 50 Fibonacci levels on the descending wave that started from 06-24-2022 until the top recorded on 06-27-2022. We expect the pair to rise from the levels specified in the recommendation. Please adhere to the numbers in the recommendation with the need to maintain capital management.

USD/TRY

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