The USD/ILS has maintained its higher recent stance and as of this writing is near 2.99550, this as lighter U.S Forex volume and traditionally quiet Israel Friday trading sessions influence conditions.
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Traders of the USD/ILS will likely find that volumes become rather questionable in the coming twelve hours. The long extended 4th of July holiday weekend is set to start in earnest from the U.S, and Friday’s most Israeli banks are not participating in the Forex markets in a large manner. Meaning that the higher price action in the USD/ILS as it trades near the 2.99550 may look attractive to bet on, but might prove highly volatile or completely silent in the coming hours and days.
The USD/ILS has correlated to USD centric strength in the broad Forex market, but the currency pair remains locked into the long-term historical lower price range. The USD/ILS under the 3.00000 level remains a point of anger to many Israeli exporters, but it simply seems the Israeli Shekel is strong and the current government and central bank of Israel are satisfied with its value.
Near-Term Sleeping Time and Speculation
The USD/ILS is certain to display a wide bid and ask in the coming hours and final trading day of this week. Speculators who insist on trading the USD/ILS are highly encouraged to use entry point and take profit orders. The lack of volume in the USD/ILS is going to grow as the hours drag by into this coming weekend.
And it must be remembered that Monday will be the official banking holiday in the U.S, meaning some day traders may choose to rest over the next few days, because financial institutions will likely be doing the same thing. The higher elements of the USD/ILS are intriguing, but to get a real gauge on sentiment, perhaps traders will have to wait until next Tuesday and Wednesday. The 3.00000 has been tested since the 23rd of June inconsistently and pushed back below the level.
Technical Traders’ Delight for the USD/ILSD
The long-term strength of the Israeli Shekel and downwards slope of the USD/ILS the past two and a half years remains easy to identify. Current conditions the past couple of weeks have started to introduce the notion of a hard bottom via support.
The current government is certainly pointing to the stronger Israeli Shekel as a sign of economic strength.
The coming elections in a few months are starting to factor into policy.
Financial institutions will probably look at anything above the 3.0000 suspiciously over the near-term.
However, because of the lack of volume in the USD/ILS which will be seen tomorrow and on Monday, it could open technical opportunities, but again day traders should be careful because there is a threat of volatility developing because of a large unbalanced orders.
USD/ILS Short Term Outlook:
Current Resistance: 2.99800
Current Support: 2.99350
High Target: 3.00300
Low Target: 2.98400
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