The USD/ILS has demonstrated an upwards move the past handful of days, and is again within sight of important resistance considerations as plenty of impetus will soon be seen.
The USD/ILS pair as of this writing is near the 3.71830 mark with fast fluctuations being delivered in Forex. The currency pair has tracked upwards this week and a low of 3.66860 was seen only two days ago. The move higher comes as financial institutions may be growing a bit nervous regarding economic data from Israel which shows signs of stress via inflation and fiscal concerns which are being fueled by the ongoing war with Hamas.
While the USD/ILS has certainly traded in a USD centric mindset and been testing mid-term support levels as late as last Friday, the currency pair has likely seen that overly optimistic selling may have sparked stronger buying in the short-term. Today’s Gross Domestic Product results from the U.S will affect the USD/ILS and tomorrow’s Personal Consumption Expenditures inflation report which the Federal Reserve looks at closely will impact Forex too.
Higher Elements of the USD/ILS Face a Test
As the USD/ILS exchange rate trades above the 3.71000 it is now within sight of the higher elements for its one month technical chart. A high of 3.77200 was seen in late April. The ability of the USD/ILS the past few weeks to test lower depths shows the currency pair is still firmly within a strong USD centric mode, but domestic issues in Israel may be creating a solid level of support for the time being.
Speculators who believe the USD/ILS can trade higher may not be wrong but the highs may be limited, and the currency pair will have to be wagered on depending on the perspective of the trader and their timeframes. Today is certain to see more volatility as growth numbers from the U.S are published via the GDP. If the numbers are weaker than expected this could help the USD/ILS see some selling momentum develop.
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Price Velocity and Lighter Trading Volumes for the USD/ILS
While the U.S will be releasing critical inflation numbers tomorrow, the USD/ILS will not have a huge influx of trading volume at that time because the weekend in Israel will have already started, meaning financial institutions outside of the nation will have the biggest influence.
- If the inflation numbers come in weaker than anticipated this could spark additional selling going into the weekend, but a stronger inflation outcome to the upside could bring the USD/ILS into a fight with higher resistance levels.
- Traders should use solid risk management today and tomorrow. Quick hitting trades need to be using take profit and stop loss orders for those using a lot of leverage.
- The USD/ILS appears to be potentially overbought, but nervousness in financial institutions may be legitimate in the near-term.
USD/ILS Short Term Outlook:
Current Resistance: 3.72400
Current Support: 3.71100
High Target: 3.75250
Low Target: 3.68850
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