- The USD/ILS is near the 3.72400 ratio as of this writing having climbed higher the past day.
- The currency pair remains within sight of highs seen on Monday when the USD/ILS touched the 3.74900 vicinity, but then moved lower and achieved a low yesterday of nearly 3.69150 before traversing slightly upwards.
- Last week the high for the USD/ILS was around the 3.79000 area, but this is when the market was essentially opening and a drop was occurring that correlated to the broad Forex market.
Although Israel’s war with Hamas rages on, the USD/ILS has shown the ability to certainly become correlated to the broad Forex market and has been affect like all other major currencies depending on the strength and outlook of the USD. Last week’s U.S jobs numbers on Friday after coming in weaker than expected did see the USD/ILS go to the 3.70000 arena. Sentiment regarding the potential of a weaker USD has helped the USD/ILS trading lower the past week and a half.
USD/ILS Range Test as Speculators Take a Wait and See Approach
The USD/ILS is within the lower part of its price range per a one month technical chart, and is still within the upper part of its value range when a three month chart is viewed. Perspectives of the USD/ILS have largely ebbed per the outlook of the U.S Federal Reserve Federal Funds Rate like other major currency pairs.
While the USD/ILS will trade tomorrow, speculators should acknowledge that trading on Friday’s tend to get quiet by the middle of the day in Israel as the weekend essentially gets set to begin. Tomorrow’s U.S University of Michigan Inflation Expectations report therefore may only see a reaction on Monday which may look rather volatile. However, the USD/ILS has actually delivered rather tranquil trading for speculators and the slight upwards move the past day may be a reaction to the thought that the 3.69000 to 3.70000 levels should act as durable support for the moment.
USD/ILS Consideration Near-Term
Israel will observe holidays early next week via its Memorial Day and Independence celebrations. Therefore trading today and tomorrow may try to position before many financial institutions in the country slumber until Wednesday of next week. While it will be possible to trade the USD/ILS early next week, volumes will be lower than normal.
· A range between the 3.69000 and 3.74000 levels may attract technical traders in the near-term.
· The USD/ILS is largely moving in a USD centric mode, but support levels may prove durable as the Israel continues to deal with domestic economic issues caused by ongoing conflict in the Middle East going into the weekend.
USD/ILS Short Term Outlook:
Current Resistance: 3.73100
Current Support: 3.71900
High Target: 3.74200
Low Target: 3.69700
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