The USD/ILS is trading within a known price realm, but the current price near the 3.52250 ratio has occurred after the currency pair touched long-term lows seen last Thursday.
After touching long-term lows not seen since January 2023 the USD/ILS reversed slightly higher and is once again within a relatively known price realm around 3.52250 this morning. The currency pair touched the 3.47000 vicinity with fast trading last Thursday via spike lower and then incrementally began to creep back upwards. The ability to break below 3.50000 started to be seen last Wednesday.
Sustained lower prices were certainly tested last week, but the reversal back to what has become a rather well defined ratio for the USD/ILS is clear. Yet, it can also be said that the current price of 3.52250 thereabouts is within the lower part of one month technical charts. Speculators looking for lower price action via the current values have a few considerations which may affect behavioral sentiment in financial institutions near-term.
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Threats of More Middle East Conflict
Day traders venturing into the USD/ILS are unlikely to be doing so without a solid perspective about Middle East politics. Currently there are nuclear discussions going on between the U.S and Iran, but the last few days have seen an escalation of rhetoric from both sides. Israel stands in the middle of this high stakes poker game. Financial institutions trading the USD/ILS are unlikely to be affected by ‘low-level’ noise coming from the negotiations, but it is something speculators should remain vigilant about because nervous large traders could shift their outlooks suddenly if rhetoric grows.
Having written the above, the USD/ILS remains within the lower boundaries of its long-term values. The Israeli Shekel has been strong and its ability to test depths that were pre-October 2023 is a sign financial institutions are quite comfortable about current conditions. Meaning there may be more downside that is tested near-term.
Speculative Wagers in the USD/ILS
The USD/ILS is not a heavily traded currency pair via volumes. Speculators need to be careful of sudden spikes and guard against them with entry price orders that receive an expected fill. Looking for over confident targets below should be avoided.
- The potential of using resistance levels above when technically perceived is a solid tactic if a conservative trader is looking for downside.
- Ratios of 3.52000 to 3.51000 look as if they are capable of being tested again.
- The U.S will release Non-Farm Employment Change numbers on Friday and global risk appetite may become more cautious leading up to the data.
- Traders of the USD/ILS are likely sophisticated enough to understand there will always be noise via emotions that need to be controlled.
USD/ILS Short Term Outlook:
Current Resistance: 3.53200
Current Support: 3.51800
High Target: 3.54000
Low Target: 3.50900
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