Current trend
The US dollar shows ambiguous trading dynamics against the Turkish lira, remaining around the level of 13.500 for quite a long time.
Activity on the instrument remains quite low, as trading participants are in no hurry to open new positions before the publication of important macroeconomic statistics on inflation in the US next Thursday. Analysts' forecasts suggest further growth of indicators, which is likely to become an additional argument for the US Federal Reserve in favor of a more active increase in interest rates. At the moment, market participants are arguing about the level of their adjustments at the next meeting of the regulator: whether the increase will be 50 basis points or limited to a weaker 25 basis points and how many rate hikes will be implemented in 2022.
As for the positions of the Turkish currency, it still depends on the rhetoric of the country's President Recep Tayyip Erdogan, who insists on further continuation of the loose monetary policy. Since September, Turkey's central bank has cut interest rates by 500 basis points, while policymakers in other developing countries are adjusting them upward to keep inflation from picking up. In January, the growth of consumer prices in the country was recorded around 48.7%. However, at a meeting on January 20, the regulator left the current monetary policy parameters unchanged and the rate itself at 14%. Experts believe that the current position of the authorities makes the national currency the most vulnerable, and it is likely to continue to decline against the backdrop of the upcoming US Federal Reserve rate hike cycle.
Support and resistance
On the daily chart, Bollinger Bands move flat. The price range practically does not change but corresponds to the current trend of the instrument. The MACD indicator decreases, keeping a poor sell signal (the histogram is below the signal line). Stochastic reached 80 and reversed into a downwards plane, which, however, correlates with the real dynamics of the instrument slightly.
Resistance levels: 13.661, 13.851, 13.939.
Support levels: 13.526, 13.428, 13.343, 13.260.
The US dollar shows ambiguous trading dynamics against the Turkish lira, remaining around the level of 13.500 for quite a long time.
Activity on the instrument remains quite low, as trading participants are in no hurry to open new positions before the publication of important macroeconomic statistics on inflation in the US next Thursday. Analysts' forecasts suggest further growth of indicators, which is likely to become an additional argument for the US Federal Reserve in favor of a more active increase in interest rates. At the moment, market participants are arguing about the level of their adjustments at the next meeting of the regulator: whether the increase will be 50 basis points or limited to a weaker 25 basis points and how many rate hikes will be implemented in 2022.
As for the positions of the Turkish currency, it still depends on the rhetoric of the country's President Recep Tayyip Erdogan, who insists on further continuation of the loose monetary policy. Since September, Turkey's central bank has cut interest rates by 500 basis points, while policymakers in other developing countries are adjusting them upward to keep inflation from picking up. In January, the growth of consumer prices in the country was recorded around 48.7%. However, at a meeting on January 20, the regulator left the current monetary policy parameters unchanged and the rate itself at 14%. Experts believe that the current position of the authorities makes the national currency the most vulnerable, and it is likely to continue to decline against the backdrop of the upcoming US Federal Reserve rate hike cycle.
Support and resistance
On the daily chart, Bollinger Bands move flat. The price range practically does not change but corresponds to the current trend of the instrument. The MACD indicator decreases, keeping a poor sell signal (the histogram is below the signal line). Stochastic reached 80 and reversed into a downwards plane, which, however, correlates with the real dynamics of the instrument slightly.
Resistance levels: 13.661, 13.851, 13.939.
Support levels: 13.526, 13.428, 13.343, 13.260.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.