Lira Declining After Budget Deficit

Today’s recommendation on the lira against the dollar

Risk 0.50%.

None of yesterday’s buy or sell transactions were activated

Best selling entry points

• Entering a short position with a pending order from levels of 17.50
• 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 17.20 مستويات levels
• The best points for setting stop-loss are closing the highest levels of 16.94.
• 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 17.41

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The Turkish lira fell against the dollar to trade near its lowest level ever, after early data showed that the country’s central government budget deficit rose by about 31 billion lira during the past year. Where the lira did not benefit from the decline of the dollar, which recorded a decline against gold, stocks, cryptocurrencies and major currencies. Investors tended to risky assets at the expense of the dollar after the strong rise of the US currency during the end of last week, after expectations of an acceleration of monetary policy tightening further after inflation data in the United States, which is clearly out of control. Despite the dollar’s decline, the lira did not benefit from this decline, which reflects the critical economic situation the country is going through with record inflation. The stimulus policy of the Turkish Central Bank also contributes to pressure on the lira.

On the technical front, the Turkish lira fell strongly against the US dollar with the opening of the market, as the pair settled near its lowest levels late last month. The pair is based on the bullish trend line on the four-hour time frame shown on the graph, at the same time the pair is trading the highest support levels that are concentrated at 17.22 and 17.11 levels, respectively. Meanwhile, the lira is trading below the resistance levels at 17.50 and 17.60, 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. We expect the pair to retreat from the previous top before re-breaking it, and then set out to record new tops. Please adhere to the numbers in the recommendation with the need to maintain capital management.

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