Forex Signal Exhausted Rise Vulnerable to Mass Sales.

forex broker

Turkey’s economy is in full recovery. The central bank reduced interest rates once again by 50 basis points, to 10.75%. Since President Erdogan’s government assumed a more direct role in monetary policy, it reduced interest rates by 1,275 basis points and promised a single digit in the second half of 2020. Economic indicators confirm the recovery, but there are still doubts about the sustainability. Debt-driven expansion can be compared to the United States, where economic indicators are contracting. With the USD / TRY trying to extend its progress with a breakout above its resistance zone, the exhausted rise.

The Strength Index, a next-generation technical indicator, initially reached a new high in 2020 before correcting its level of upward support. He was able to reverse and turn his horizontal resistance level into support, as marked by the green rectangle. While the Bulls have regained control of the USD / TRY after the thrust in positive conditions, the level of downward resistance is benefited to press the Force Index towards a recovery. The collapse of this technical indicator will precede a corrective phase in the price action.

The surprising opposite reading last week for the US service sector shocked the markets, but more data are expected to assess whether this is the beginning of a trend to monitor. The current resistance zone located between 6.11019 and 6.14431, marked by the red rectangle, was initially established in August 2018. It has forced three massive corrections in the past and, given the evolution of economic conditions in the United States and Turkey, it is anticipated that a fourth will materialize, which will lead to a breakdown in the USD / TRY.

The price action may face a potentially violent massive profit-taking sale, closing the gap to its rising level of support of the Fibonacci retracement fan 38.2. A key level to monitor is the intraday minimum of 6,07910, the minimum of the previously reversed breakdown. It is feasible that a boost below this level will inspire the next wave of net sales orders in USD / TRY. It will clear this pair of coins to descend to its short-term resistance zone located between 5,95319 and 5,98526, as marked by the gray rectangle. You can read more about the Fibonacci recoil fan here.

In the case of a breakout in the Strength Index above its falling resistance level, the USD / TRY is expected to exceed its resistance zone. With the US economy on the verge of a potential recession, the upside potential is limited to its next long-term resistance zone, located between 6,33730 and 6,41854. The upper level represents the lower part of the candlestick that marked a historical maximum in this pair of coins. Top Forex broker

are advised to consider this as an excellent short sale opportunity.

Forex is easy to learn and success can come with the first trade. Understanding how the final profit and loss analysis is configured is an important first step in Forex trading and a certain amount of Forex training is definitely a prudent task for all traders if they want to make money doing Forex trading. Understanding the technical and fundamental reasons behind currency pairs and how they affect price movements, as well as knowledge and familiarity with Forex Signals providers and tools, leads to a more successful trading experience.

Forex is just one of the many investment vehicles that a trader can choose and like all other financial instruments, both profits and losses are part of the game. One of the best ways to increase your chances of success in Forex is to understand how currency trading works. Creating a demo or practice account can offer an opportunity to trade in a real account without putting any money at risk and most Forex brokers offer this option. Another feature to look for in a Forex broker is if a free demo account option is provided. Demo accounts allow you to make trades in a real online account without putting money. Brokers offer this option with different time frames and different amounts of virtual trading funds, but even for a short period of time, the use of a demo account offers enough opportunity for you to understand the concept of Forex and learn how they work.

Currency Price Movements.

The Forex trading platform offered for use by each broker must also be seriously considered before deciding whether or not to open an account. The trading platform is used to place orders, check Forex news, perform technical analysis, and manage the trading account and much more. Sometimes the platform is a third-party application, but in many cases it is also a specific application created, designed or modified by the Forex broker. Comparing the features provided in the different versions of the basic platform and those of the newest updates is necessary to assess whether the platform works for you.

You May Also Like

About the Author: Khurram Raheel Akbar

Meet Khurram Raheel Akbar our senior content writer.  With over 10 years of experience in the field of content writing, Raheel, has established himself as an expert in creating engaging and informative content. His exceptional writing skills have enabled him to craft compelling stories that resonate with audiences across a variety of industries. Raheel's writing style is concise, clear, and impactful, making him a go-to writer for any business looking to enhance its brand's online presence. His dedication to staying up-to-date with the latest trends and strategies in content marketing allows him to create relevant and informative content that drives traffic and increases conversion rates. Raheel's passion for writing is matched only by his commitment to delivering exceptional results to his clients. Whether you're looking to revamp your website, launch a new product, or establish your brand's voice, Raheel is the senior content writer you need to bring your vision to life.