The USD/ILS is near the 1.36000 ratio with fast changes being seen in the value per bids and asks, this as USD centric strength has shown signs of life in the broad Forex market.
After testing the 3.30000 level in early July and then from the 9th through the 11th, the USD/ILS is currently around the 1.36000 level as resistance continues to be pestered. A high near the 1.37200 vicinity was seen on Monday and yesterday. The USD/ILS can be said to be correlating to the broad Forex market as financial institutions have made the USD stronger.
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The highs being seen in the USD/ILS in the near-term need context, because the currency pair is certainly within the lower realms of its long-term range. The Israeli Shekel may be seen as being too strong by the Bank of Israel at this moment. However due to inflation remaining sticky and fiscal concerns due to government policy, the Bank of Israel is finding it difficult to lower their interest rate.
Waiting on the USD and the Federal Reserve
The USD/ILS is touching up against resistance which might be seen as vulnerable to day traders. It is possible some speculators may believe technical support below during the short and near-term may provide an opportunity to look for upside price action. The USD/ILS within a range of 3.40000 to 3.45000 would not be a bad thing for the Israeli economy. However, desire and reality are two different things.
USD/ILS price action has now had almost all of its risk premium discounted. Yes, financial institutions must pay attention to regional problems in the Middle East, but Israel is a secure nation and its banking system is confident. Thus, the USD and the Federal Reserve will serve as the main ingredients for USD/ILS movement moving forward. Risk adverse trading in the USD has risen the past couple of weeks, the move higher in the USD/ILS the past week reflects a correlated response.
Speculative Approach to the USD/ILS
Today and tomorrow could provide traders with a taste for speculative upside an opportunity. However, looking for too much of a move higher could be dangerous.
- Perhaps if the USD/ILS tests the 1.35400 to 1.34900 ratios lower, this will present a wagering ground for considering targets above which track towards the 1.36000 area and slightly above.
- The USD/ILS doesn’t have a lot of volume. It is still a specialist trading ground, meaning entry price orders and strict take profit and stop loss values need to be assigned, along with patience.
- Looking for upwards moves above the 1.38000 level may be a step too far with the USD/ILS for conservative traders near-term.
USD/ILS Short Term Outlook:
Current Resistance: 3.36100
Current Support: 3.35400
High Target: 3.37300
Low Target: 3.33950
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