- The USD/ILS is near the 3.71990 ratio as of this writing and is banging up against important near-term resistance as the 3.72000 appears to be an important threshold.
- The USD/ILS late last week also bounced along the current higher values and then the currency pair traded lower and touched the 3.65220 vicinity on Tuesday.
The weakness in the Israeli Shekel is certainly being stirred up by poor economic data which is an effect caused by the ongoing war the nation is fighting. Inflation remains challenging and fiscal budgets are being pressured as costs mount. While the USD/ILS has traded in a correlated manner to the broad Forex market there does seem to be upside pressure which is outside the scope of USD centric concerns.
USD/ILS Near Resistance as Important U.S Data Looms
Tomorrow’s U.S jobs numbers which will include the Non-Farm Employment Change and Average Hourly Earnings will certainly affect the USD/ILS. Next Wednesday’s U.S Fed FOMC meeting is even more important to the dynamics for the USD/ILS in the coming week. Having touched a low on Tuesday which had last been seen in late March and very early April shows the ability of the USD/ILS to correlate to the broad market. So the nervousness regarding Israel’s economy must not be exaggerated by day traders.
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Short-term reactions to the U.S jobs numbers tomorrow will influence the USD/ILS; if the jobs data is weaker this could easily shake the currency pair to within insight of its lows and below what was seen earlier this week. Today’s trading in the USD/ILS however is likely to be choppy, if there is movement lower today it will likely be coming from large players betting on weaker jobs numbers tomorrow and a more dovish sounding Federal Reserve next week. If the USD/ILS trades lower today, this could set the table for some fast price velocity late on Friday and into next week.
Range of the USD/ILS and Fear of Moves Higher
If the USD/ILS trades higher today it would be going against the broad market which has continued to produce stronger results against the USD. Yes, cautious currency traders will certainly see reversals and it can be argued what has taken place in the USD/ILS the past couple of days is simply range trading and a bit of nervousness as the U.S data and Fed approach.
- However if the USD/ILS breaks above the 3.72000 level and sustains higher prices going into tomorrow’s U.S jobs number reports, this would be interesting and an opportunity to look for lower price action if U.S data confirms a slowing U.S economy tomorrow.
- In the last week of April the USD/ILS traded above the 3.80000 level, this is unlikely to happen for the currency pair in the near future unless there is an escalation in the conflict in the northern part of Israel with Hezbollah.
USD/ILS Short Term Outlook:
Current Resistance: 3.72050
Current Support: 3.71610
High Target: 3.73600
Low Target: 3.67100
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