The USD/ILS has moved again towards the lower part of its mid-term price range in early trading today, speculators looking for consistent downward momentum however have a fight on their hands.
The USD/ILS continues to perform rather well in Forex. The currency pair has taken on equilibrium which financial institutions clearly favor. Resistance levels around the 3.57000 to 3.58000 have tended to produce selling and the 3.55000 ratio often proves to be a location support levels begin to create reversals.
While political conditions in Israel have turned more tranquil, there is always a shadow of potential news developments that can change behavioral sentiment. Traders are advised to keep their ears on the Middle East situation, but also are strongly encouraged not to overreact to all details. Large players in the USD/ILS market can be compared to WTI Crude Oil institutional traders, they are both experienced with world affairs – meaning they keep their emotions in check.
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Economic Data and the USD/ILS
The Bank of Israel has made it known they plan on keeping their main borrowing rate in place. Inflation concerns continue to hit Israel, but for the moment the central bank has not acted. Food prices in Israel have become outrageous and people are complaining, but this situation does not factor practically into the value of the Israeli Shekel. For the moment the USD/ILS continues to traverse low water marks and if the Middle East can continue to provide tranquil circumstances the currency pair may simply traverse its known range.
The U.S will be releasing is GDP numbers today, but economic data from the U.S is taking a backseat to the reactive world created by noise surrounding the Trump administration. The media continues to create headlines based on the President’s rhetoric. Financial institutions however may be growing accustomed to the circumstances and may be feeling more comfortable regarding their Forex outlooks, including the USD/ILS.
Opportunities in the USD/ILS Near-Term
Speculators in the USD/ILS need to use conservative wagering leverage and practice patience while waiting for their targets to be hit. A price range of 5.53000 to 5.57000 may be the active range near-term with some potential outlying action depending on momentary reactions.
- Traders need to remember that trading on Friday in the USD/ILS often sees a drop off in volumes because Israeli banks are not as active.
- Meaning that it is often Monday through Thursday that produces the most action.
- Traders looking for lower movement from the USD/ILS near and mid-term may be proven correct, but they should remain realistic regarding their price targets.
USD/ILS Short Term Outlook:
Current Resistance: 3.56050
Current Support: 3.54800
High Target: 3.57900
Low Target: 3.53600
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