The USD/ILS has returned to lower support levels and financial institutions in Israel may be producing a stronger Israeli Shekel based on optimistic hopes.
- The USD/ILS is near the 3.72300 level as of this writing.
- A low of nearly 3.69990 was seen yesterday which had last seen sustained price action in the later part of September.
- The USD/ILS did touch a high last Friday of nearly 3.80500. Last week’s trading saw a higher price range challenged as concerns about the conflict in the Middle East were running high.
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The crisis between Israel and Iran continues, but for the moment rhetoric is remaining somewhat calm. Financial institutions in Israel returning from the holidays this week, sold the USD/ILS with force to start Monday and the currency pair has practiced its lower realm the past few days in a rather tranquil fashion. Resistance near the 3.73000 level appears to be rather durable, except to say some outliers have certainly been seen with higher trading.
More Risks Coming for the USD/ILS
The USD/ILS has risks ahead. The U.S jobs numbers tomorrow will affect trading, and there is the U.S election outcome which will have a big impact on the Israeli Shekel. Financial institutions must remain cautious before the results for U.S Presidential race are known, but if Donald Trump wins this could help spur on USD/ILS selling. The U.S Federal Reserve will also announce its interest rate announcement next week.
Until all of these risk events are clarified, traders should expect the USD/ILS to remain in a rather consolidated mode. There may be some price movement if financial institutions begin to wager early on the outcome of the U.S election and potential interest rate decision from the Federal Reserve. Speculative traders may believe the USD/ILS has the ability to trade lower and retest support levels around the 3.69000 to 3.65000 marks. However, these would be speculative bets if outlooks are not for financial institutions.
Near-Term USD/ILS Trading
Short-term traders should remain cautious. Trading volumes in the USD/ILS currency pair will be tricky over the next two days, the Israeli Shekel doesn’t transact massively on Friday’s. But because of the U.S jobs numbers tomorrow, financial institutions may remain active. Quick hitting targets remain the key, not overly ambitious goals.
- Monday’s trading next week is where volatility will likely start to rise significantly. Risk management in the near-term needs to be strict.
- Traders may be tempted to bet on more downside, but one thing the Middle East has the capability of doing is to provide surprises.
- Traders should not get too comfortable.
USD/ILS Short Term Outlook:
Current Resistance: 3.72550
Current Support: 3.72270
High Target: 3.73300
Low Target: 3.70100
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