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USD/ILS Analysis: Sideways Price Action and Speculative Tight Trading

By Robert Petrucci

Robert Petrucci has worked in the Forex, commodity, and financial profession since 1993. Important aspects of his work involve risk analysis and advisory services. As an advisor in a Family Office he maintains a conservative approach for wealth management and investments. Robert also works in private finance with investors and companies delivering financial and management services....

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The USD/ILS is near the 1.35440 mark as of this writing depending largely on a rather wide spread regarding bids and asks this morning, essentially providing sideways price action in a cautious Forex market.

USD/ILS Analysis 25/09: Sideways Price Action (Chart)

The value of the USD/ILS is around the 1.35440 vicinity this morning depending on the quote coming from brokers’ platforms as the currency pair demonstrates a wide spread. The USD/ILS is not heavily traded, but does offer speculators an opportunity to take advantage of a rather well-practiced range dance when it move sideways. The USD/ILS is trading near values today – the 25th of September, that it did on the 26th of August.

In the past month of trading the USD/ILS has correlated to the broad Forex market well. The USD/ILS continues to trade within the long-term lower boundaries of its value. The Israel Shekel continues to prove remarkably strong. It could be argued except for a few outliers above that the USD/ILS has provided a rather consistent range between 3.30000 and 3.40000 since the 24th of June.

U.S Data and Correlations to Broad FX Market

The U.S will release important growth and inflation numbers today via GDP reports. If there are surprises this could spur on some short-term volatility in the USD/ILS. It should also be remembered that this is a holiday week in Israel and its banks are not very active. Perhaps a return to trading desks today may spur on some reactions, but the USD/ILS has stayed within a rather well-defined range and not provided any outlandish moves the past week.

While the USD/ILS did go lower last Wednesday when the U.S Fed did cut its interest rate, it is clear the move was anticipated by financial institutions and the currency pair quickly moved from a low of around 1.31600 vicinity back towards the 1.34500 to 1.35000 ratios over the coming days.

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Quiet and Speculative Opportunities

Because of the holiday season in Israel, the USD/ILS may prove attractive to traders looking for small technical moves near-term. Trading should be done cautiously still and by using risk management.

  • The USD/ILS may react to the GDP growth and inflation numbers today.
  • Volumes in the USD/ILS may be slightly better today compared to yesterday which could open the door for some trading opportunities.
  • However, sideways price action in the USD/ILS may remain rather lackluster for impatient speculators, and it is not a good idea to carry the currency pair overnight for day traders because of extra costs.
  • The 1.35500 ratio may be looked at as being too high for the USD/ILS, but sellers should not get overly ambitious regarding steep depths and instead use quick hitting take profit orders to cash out winnings if they materialize.

USD/ILS Short Term Outlook:

Current Resistance: 3.35100

Current Support: 3.35300

High Target: 3.35800

Low Target: 3.34400

Ready to trade our daily Forex forecast? Here’s a list of some of the top forex brokers in Israel to check out.

Robert Petrucci has worked in the Forex, commodity, and financial profession since 1993. Important aspects of his work involve risk analysis and advisory services. As an advisor in a Family Office he maintains a conservative approach for wealth management and investments. Robert also works in private finance with investors and companies delivering financial and management services.

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