- The USD/ILS has entered today’s trading within the grasp of near-term highs and although there is a holiday in Israel, traders of the currency pair need to be braced for the potential of coming volatility.
- The USD/ILS is near the 3.80030 level as of this writing.
- The currency pair should be rather quiet today because of a holiday being observed in Israel.
- However recent trading in the USD/ILS shows the effects of nervous behavioral sentiment and the likely inclination to edge towards higher values while financial institutions are away from the marketplace.
- The USD/ILS is trading today and speculators should anticipate wide bids and asks because of the low volume.
The ability of the USD/ILS to climb over the 3.80000 yesterday after touching relatively lower depths late last week is a clear signal financial institutions view lows in the currency pair as a place to look for reversals. While short-term trading will be extremely quiet in the USD/ILS, traders are advised to sit on the sideline for the day. But tomorrow even as limited trading begins, price velocity in the USD/ILS could be a factor. At these levels the USD/ILS does appear to be overbought, but U.S centric considerations are creating caution.
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Caution and Correlation in USD/ILS Near-Term
While the Middle East conflict continues to be seen and heard, the USD/ILS has correlated well to the strength in USD centric positions experienced across global Forex. The Israeli Shekel has lost value as most other major currencies have too against the USD. The nervousness that does exist in financial institutions about the Middle East situation actually may not be as significant as doomsayers believe. This leaves the door open to the prospect of the USD/ILS continuing to move in a USD centric manner.
Economic data from the U.S today will present Manufacturing PMI results and weekly Unemployment Claims, but the effect of the outcome may be limited across Forex and on the USD/ILS even into tomorrow. The currency pair may find itself more influenced by returning traders who have been on holiday and the coming risk events which are numerous.
USD/ILS Coming Attractions
The U.S economic data next week includes the GDP statistics and Non-Farm Employment Change numbers. There is guaranteed to be more saber rattling from the Middle East, the question is if the situation will stay quiet enough to allow for tranquil USD/ILS trading or if another escalation will occur? And then there is the shadow of the U.S election which does have major implications for Israel and the Middle East. In other words the choppy range of the USD/ILS is likely to continue over the near-term. Clarity will not be delivered in the coming days.
Traders in the short-term who are participating today should be prepared for the potential of very quiet price movement, but sometimes abruptly hit with sudden sparks if a large unbalanced position happens.
Volumes in the USD/ILS will increase tomorrow, and early next week will certainly see full trading.
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USD/ILS Short Term Outlook:
Current Resistance: 3.80100
Current Support: 3.79210
High Target: 3.81400
Low Target: 3.77900