The weakness affecting emerging currencies has left a small margin to the Turkish Lira (TRY) at the moment. On Thursday, May 16th, we have witnessed a sharp cut in interest rates by 50 basis points which brought the cost of Turkish money to an absolute low of 4.50%, then later, a promotion by Moody’s has brought the Turkish rating from Ba1 to Baa3, so at investment grade level. This promotion has coincided with the visit of Prime Minister Erdogan to the White House and brings the Turkish rating to the same levels of Spain, Colombia, and India.
Just the Try, paradoxically, could now enter a devaluation phase and could come back the volatile currency appreciated by Forex trading operators.
The EurTry graph is just an invitation to open a Forex account for those who want to start doing Forex trading through online brokers.
The oscillators close to the oversold, a classical head and shoulder figure in formation near the 200 days moving average that has been supporting the cross for months, and finally the reaction of traders to the news of the upgrade in the ratings that led to the formalization of a weekly reversal figure known as bullish engulfing pattern, make it highly likely a show of strength for EurTry in the next few trading sessions. This movement might be exploited via a classical operation of Forex trading ‘long EurTry’ that any Forex broker, currently on the market, will be able to offer through online platforms accessible by opening a Forex account, both demo or real.
It’s obvious that surpassing the neckline of 2.7 would push EurTry in area 2.43, making it the target of the long EurTry operation with a stop loss to be placed near the 200-days simple moving average of 2.3330. This view is clearly supported by the bullish break of EurTry that also, in this case, offers the opportunity to those who operate on the Forex trading to go long on a highly volatile cross. As we can see from the graph, a long period of accumulation is just finished inside a continuation figure is known as a pennant, definitively broken upward just the past week.
When we perform long or short operations on EurTry and/or UsdTry, the best choice for beginners is clearly to open a virtual Forex account that can allow the trader himself to become familiar with Forex trading and especially its factors risk. The bid-ask spreads, the leverage employed, the trading hours and the resulting liquidity of a cross, the market movers able to influence the trend of a currency, are just some of the factors to consider when doing Forex trading. Often, we can have some great trading ideas that, for a risk excess and an incorrect money management, do not lead to positive results, discouraging traders. Therefore, knowing how to work on Forex trading effectively becomes essential.
Charts sources: Metastock