The USD/ILS has gone higher in the past half day as the Middle East took another dramatic turn last night, yet the currency pair has also displayed a remarkable amount of resolve and ability to reverse lower.
- Last night’s barrage of missiles into Israel certainly caused nervousness in financial institutions and the USD/ILS did trade upwards.
- However, the current values the currency pair is now hovering within near the 3.77190 ratio has been seen before and continues to demonstrate a rather durable amount of resistance above.
The Middle East conflict escalated another notch and emotions are running deep, shifting behavioral sentiment in the USD/ILS is being demonstrated but it appears steady. Traders cannot realistically know what is going to happen next via the saber rattling. However, traders of the USD/ILS need to understand a banking holiday begins in Israel this evening which will begin to affect transaction volumes later today and tomorrow.
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USD/ILS Thin Trading and Volatile Circumstances
The USD/ILS exchange rate was trading around the 3.72000 vicinity before yesterday’s loud attack from Iran began. The combination of the Israel banking holiday and the U.S jobs data that will be published on Friday will make the USD/ILS perhaps more volatile over the next few trading days for speculators brave enough to wager on the currency pair.
There is also open discussion that Israel’s economic outlook is not particularly good over the mid-term. However, traders might not want to pay too much attention to the rhetoric from ratings agencies, because a lot of the negative economic impacts per Israel’s conflicts have already been factored into the USD/ILS. This means the Non-Farm Employment Change data from the U.S will actually still be a focal point for USD/ILS near-term.
Resistance as a Wagering Ground for the USD/ILS
Certainly there are no guarantees regarding what will happen over the next few days in the Middle East, but financial institutions are still treating the USD/ILS in a relatively calm manner. Traders tempted to be buyers at the current higher levels being demonstrated may find reversals lower still able to produce strong moves and prove costly wagers. Speculators who have the ability to be patient may be able to take advantage of potential downward shifts in the USD/ILS. The next couple of days will likely produce choppiness and trading will become thin in the currency pair.
- However, looking ahead a few days and into early next week speculators may believe the 3.79000 to 3.80000 levels may prove to be durable as resistance and the USD/ILS may resume its lower price realm between 3.76000 and 3.73000.
- Traders need to be careful with the USD/ILS because of the shadows via geopolitical and U.S data risks.
USD/ILS Short Term Outlook:
Current Resistance: 3.77890
Current Support: 3.76950
High Target: 3.79300
Low Target: 3.72400
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