- The USD/ILS is trading near 3.62570 as of this writing, the currency pair is touching lows and price action certainly appears to be testing short-term support levels.
- Yesterday the Central Bank of Israel kept its monetary policy in place, but this does not mean all is wine and roses for the Israeli Shekel, because economic conditions in the country remain problematic largely due to the economic consequences caused by the war with Hamas.
Inflation numbers remain troubling in Israel and although the Central Bank of Israel doesn’t want to increase its interest rate, higher prices are causing problems for consumers. Growth numbers in Israel have collapsed since the outbreak of the war and the combination of strong inflation and a lack of growth is a concern. Yet the USD/ILS has actually traded lower in the past handful of days and this is a signal for traders a healthy correlation to the USD remains intact.
Important Support Levels and Critical U.S Data in Sight
While the USD/ILS battles near important mid-term support and traders need to use solid risk taking tactics if they are speculating on the currency pair, it should also be noted the U.S will release vital economic data this week. Today starts off with Consumer Confidence numbers, tomorrow GDP statistics will come and on Thursday key inflation gauges will be released. The USD/ILS will react to the outcome of these reports like the broad Forex market.
Traders of the USD/ILS participating today should also know that today is a municipal election day in Israel, which means trading of the currency pair will have extremely low volume and thus set the table for a sudden reaction tomorrow. Some traders of the USD/ILS are certainly looking at the 3.62000 to 3.60000 ratios as potential places for a reversal higher to ignite.
Top Forex Brokers
Mid-Term Considerations Regarding Short-Term Ratios in the USD/ILS
The USD/ILS has not traded below the 3.60000 ratio in a sustained manner since July and June of 2023. While it may be speculatively intriguing to bet on the currency pair sustaining its recent move lower and suddenly breaking below the 3.60000 level, it may also prove dangerous for short-term traders. Targets should be kept realistic by USD/ILS.
- The USD/ILS will react to Wednesday’s GDP numbers from the States. If the growth number is stronger than anticipated this could spur some buying of the currency pair in the near-term.
- Traders are likely glad to see calm conditions in the USD/ILS which correlate to the broad Forex market. If the USD/ILS were to break below the 3.60000 level in the short-term this would be an interesting development.
USD/ILS Short Term Outlook:
Current Resistance: 3.62820
Current Support: 3.62210
High Target: 3.64600
Low Target: 3.60300
Ready to trade our daily Forex forecast? Here’s a list of some of the best online forex trading platforms to check out.