Earlier this week, Turkish President Recep Erdogan fired the chief of the Central Bank, hoping to completely change the course of monetary policy. As a result, the lira plunged by almost 15%. It managed to partially recoup losses by the middle of the week, settling at $7.9.
Trading recommendation on USD/TRY:
We have a three-wave structure ABC. Wave A was formed amid the news about Erdogan's decision. You can consider entering short positions on a 50% Fibo retracement from the level of 7.830 according to the chart above. You should set a Stop Loss order at 7.3 and take profit on a breakout at 8.5.
The trading recommendation is based on Price Action and Stop Hunting strategies.
Have a nice trading day and always control your risks!
