Every speculator wants to be sure. Every day, a trader wants to look at the long-term technical chart and know the trending direction of the asset. The USD/TRY exchange rate has proven to be one of the most important currency pairs that have delivered seemingly one-sided growth over the past few years.
During today’s morning price action, the pair is trading near the 19.25400 indicators; yesterday’s low briefly touched the 19.165050 indicators. However, yesterday’s high has been close to today’s trading. Yes, the USD/TRY trend is up, but the movement comes with sudden reversals, and traders don’t have much insight into the exact timing of the upcoming move.
Many financial institutions expected the US Federal Reserve to become less destructive and the US dollar to weaken in most major currency pairs, but this was not the case for the pair. Dollar/Lira uptrend should continue. While the currency pair’s bullish momentum has been a thrill at times, momentum is unmistakable on technical charts.
USD/TRY trading analysis
Despite USD/TRY is a major currency pair, its trading volume remains quite low most of the time. Traders can look at long-term charts and spot an obvious bullish trend, but the timing of bullish moves still needs to be determined.
This means that day traders who follow the USD/TRY pair by buying positions based on technical trends and fundamental observations still need to improve to profit from the currency pair. Indeed, when looking to make a quick USD/TRY trade, entering and exiting trades with timely selected price orders is often difficult, meaning overnight charges can become a factor.
Steps to take when trading with the pair
And here is an important caveat: if you want to trade USD/TRY and are a day trader, you must use a price order; otherwise, you have to expect to be “filled” with an unexpected price, which can turn out to be very expensive. You’ll always need entry prices, stop loss, and take profit targets when betting on USD/TRY.
- The USD/TRY exchange rate has been gradually rising and is likely to continue rising.
- However, traders should know all potential transaction costs when trading USD/TRY.