bdswiss_-_forex_cfd_and_binary_options_-_2016-06-06_10-06-47From Investor to Scalper – series of studies created in cooperation with broker BDSwiss, in which we take a financial instrument and the analysis includes a detailed look at the value from the monthly chart and ending with H1/M15.

Currency pair USDTRY from the very beginning of their trading moves north. The growth dynamics gained following the announcement of the results of the November presidential elections in the United States, which resulted in strong appreciation of the US dollar.

USDTRY Monthly
USDTRY Monthly

Looking at the weekly chart we see that from the beginning of the year market sets higher and higher peaks. It is worth mentioning that these are historical highs so it is hard to trace any significant resistance in the area of which could occur bearish response.

USDTRY course from the beginning of the year increased by 7.75% and if we include last week’s extreme it would be nearly 11%. It should also be noted that the total volatility in 2016 was 20.91%.

From a technical point of view, in accordance with the principle of changing polarity, level, which previously was a resistance after the defeat should be tested as support. According to this theory in the near future we expect a decline, at least in the vicinity of 3.5500 levels although if you look at the defeated in October last year level of 3.0980 we see that the market has not yet tested it from the top. Accordingly searching after potential falls here would be pure speculation.

From prepared by Moody’s and published in the last week rating for Turkey we could read that the Turkish lira being just behind the Argentine peso was ranked in second place among the currencies of developing countries. Both rating agencies Moody’s Ba1 level as well as that prepared by S & P at BB does not predict economic growth nor more changes in long-term bullish trend for the pairs with TRY.

USDTRY Daily
USDTRY Daily

Looking at H4 chart we can notice that the market actually after the defeating and re-testing has already rejected aforementioned level 3.5500.

USDTRY H4
USDTRY H4

For January 24 is planned meeting of the Central Bank of Turkey (TCMB) on monetary policy. Situations could improve rate hike. It is said that rates could rise by up to 200 basis point (for comparison – the central banks of developed countries typically use a change of 25 basis points), but these are only speculations and judgement of investors.

USDTRY H1
USDTRY H1

On H1 we see that market is moving from last Friday in a consolidation creating a ascending triangle formation. Bullish breakout could open way to further growth and re-test of level 3.9200. However, if the market breaks the bottom, potential declines could even reach the level of around 3.7070.

bdswiss_-_forex_cfd_and_binary_options_-_2016-06-06_10-06-47BDSwiss offers its customers a sophisticated and reliable tool to invest in the market CFD / Forex. Especially novices can result in the safe introduction into the world of financial investments. The educational program of seminars and live comments market traders meet the expectations of those who want to learn how to invest successfully, which is building a great partnership between BDSwiss and its customers.

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