USD/TRY Forecast Today 19/12: Extends Losses (Chart)

(MENAFN- Daily Forex) Signals for the Lira Against the US Dollar Today

Risk 0.50%.

Bullish Entry Points:

• Open a buy order at 34.90.
• Set a stop-loss order below 34.75.
• Move the stop-loss to the entry point and follow the profit with a price movement of 50 pips.
• Close half the contracts at a profit of 70 pips and leave the rest until the strong resistance levels at 35.25.

Bearish Entry Points:

• Place a sell order for 35.25.
• Set a stop-loss order at or above 35.30.
• Move the stop loss to the entry point and follow the profit with a price movement of 50 pips.
• Close half the contracts at a profit of 70 pips and leave the rest until the support levels at 33.99.

Top Forex Brokers1 Get Started 74% of retail CFD accounts lose money Turkish Lira Analysis:

The USD/TRY pair continued trading at the same pace during the early morning hours of Thursday, as the price stabilized above the 35 lira levels. The Turkish lira has witnessed record declines, especially in recent months, with the decline of support provided by the Central Bank and monetary authorities in Turkey. The lira's decline was not limited to the dollar, as the local currency also recorded record lows against the euro, with the euro reaching 36.73 lira. Meanwhile, gold prices continued to rise amid demand for the precious metal as a hedge against currency depreciation and continued high inflationary pressures.

The decline of the lira comes despite the Turkish Central Bank's fixing of interest rates at a record level of 50%. High interest rates supported an increase in the volume of non-resident deposits in Turkish lira by 38%. High interest rates also represent one of the factors in the price of the lira, which supports it as a better investment opportunity among emerging market currencies during the current and coming year. In this regard, a report that included the opinions of investment experts revealed a strengthening of bets on the Turkish lira, as the portfolio manager at "T. Rowe Price" confirmed her company's strengthening of its positions in the Turkish lira after its sudden decline, pointing to good future growth opportunities for the Turkish currency. While Anders Fergiman of "Pinebridge" pointed to the lira's resilience, expecting that the expected interest rate cuts would enhance the attractiveness of Turkish bonds.

On the other hand, short-term external debt remains the most prominent challenge facing the monetary authorities in the country. Short-term debt reached approximately 180.1 billion in October, up 2.3% from the same period last year. At the same time, the external loans of banks recorded an increase of 20.1% to reach 82.2 billion dollars, amid the excessive reliance of the banking sector in Turkey on external financing.

In general, the Turkish lira is expected to continue its losses despite high interest rates and investment opportunities available amid the decline of support from the Turkish authorities.

EURUSD Chart by TradingViewTRYUSD Technical Analysis and Expectations Today:

The USD/TRY pair has maintained the trading pace it has been recording over the past weeks, as the price stabilized above the 35.00 lira levels this morning. The pair is expected to continue rising amid the dominance of the overall upward trend, which is evident from the price movement within an ascending price channel. Also, the price trading above the 50 and 200 moving averages on both the daily and 4-hour timeframes. The Turkish lira price forecast includes the continued rise of the pair after each decline, targeting levels of 35.10 and 35.25, respectively.

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