USD/TRY Forecast Today 09/01: Lira Soars In 2024 (Chart)

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

• Risk 0.50%.

Bullish Entry Points:

• Open a buy order at 35.20.
• Set a stop-loss order below 34.95.
• 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 35.50.

Bearish Entry Points:

• Place a sell order for 35.50.
• Set a stop-loss order at or above 35.60.
• 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 35.29.

Turkish Lira Analysis:

The USD/TRY pair has maintained its stability throughout this week's trading, with trading confined to a limited range between 35.20 and 35.40 over the course of this week's trading.

Despite the lira's decline last year, a report published by Bloomberg revealed a positive shift in the lira's trajectory last year, supported by the tightening monetary policy adopted by the Turkish Central Bank throughout the year. Recently, the Central Bank of Turkey has adopted a strategy aimed at enhancing the attractiveness of the Turkish lira to investors by offering high returns. Obviously, this strategy is based on allowing the lira to depreciate against the dollar but ensuring that the rate of depreciation is less than the inflation rate. Furthermore, this approach aims to reduce the impact of currency weakness on rising prices.

Over the past year, the lira has depreciated by 16% against the dollar in nominal terms. However, when taking inflation into account, the lira recorded significant gains, the best since 2007. This policy provided a unique opportunity for foreign investors, as they could achieve returns of over 50% by investing in Turkish lira bonds, making it one of the most attractive options in the financial markets.

At the same time, the report indicated an improvement in the value of the lira, Turkish President Recep Tayyip Erdogan confirmed that interest rates will start to decline from 2025, indicating his belief that lowering interest rates will lead to a slowdown in inflation. The Turkish president explained that the economic team will certainly begin to cut interest rates in 2025, and thus inflation will also fall/TRY Technical Analysis and Expectations Today:

Technically, the USD/TRY pair has maintained its stability over the course of the week's trading within the same narrow trading range below the peak recorded in late 2024 at 35.42 lira. Meanwhile, the Turkish lira price forecast indicates continued dollar strength despite the current divergence. Also, the overall upward trend dominates the pair's path through the price's stability above the upward trend line. As well as the price trading above the 50-period moving average on the four-hour timeframe. Moreover, these are the same signals that exist on a larger timeframe with the pair trading above the 50 and 200-day moving averages. If the pair breaks through the recorded peak, it will target levels of 35.50 and 35.75 respectively.

EURUSD Chart by TradingView

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