After starting the week with another leg up and testing known highs around the 3.73500 vicinity, the USD/ILS has seen sellers start to dominate and the currency pair has returned to lower values.
The USD/ILS is around the 3.67850 ratio as of this writing with fast changes being seen via bids and asks. Global Forex conditions are fast and tumultuous among major currencies teamed against the USD as behavioral sentiment continues to shift rapidly. Monday’s surge higher certainly caused harm to day traders who were wagering on the USD/ILS to remain within lower realms. U.S equity indices have produced whipsaw result and this has had an effect on Forex including the USD/ILS.
The ability of the USD/ILS to selloff in force yesterday occurred as positive momentum suddenly surged on Wall Street. The currency pair broke below the 3.70000 ratio and has sustained trading below today. Day traders will have to remain cautious regarding their ambitions in the USD/ILS over the near-term because there is a chance new dynamics could rapidly surface.
Narratives and Battling the Known USD/ILS Price Range
The known range of the USD/ILS continues to be rather consistent. While it may prove difficult for traders who can only wager on quick hitting changes via their technical outlooks, traders who can be patient and use conservative leverage may continue to find opportunities in the USD/ILS. The low for the USD/ILS since the middle of April has seen strong support around 3.67500.
If the USD/ILS doesn’t experience a violent reversal higher today or tomorrow, it may signal that a challenge to this support level could be in the minds of financial institutions. From the middle of March onwards technically support around the 3.65000 to 3.64000 has been seen. If positive momentum via more risk appetite emerges the USD/ILS could see lower values develop again.
Speculative Conditions and Choppy Forex
While the USD saw extensive weakness develop since the first week of April against many currencies, the USD/ILS did not mirror the massive moves. The volume in the Israeli Shekel remains a secondary level currency pair. Is now the time for the USD/ILS to begin correlating to USD weakness?
- The ability however of the USD/ILS to trader lower yesterday and today while sustaining near-term lows is intriguing.
- As always speculators need to be cautious.
- The U.S White House has a habit now of causing storms to brew in the financial markets rather quickly with loud rhetoric coming from President Trump.
- Yet, if calm can prevail, day traders may believe selling the USD/ILS around perceived technical resistance is a bet they want to make.
USD/ILS Short Term Outlook:
Current Resistance: 3.68600
Current Support: 3.67200
High Target: 3.69900
Low Target: 3.65300
Ready to trade our daily Forex forecast? Here’s a list of some of the top forex brokers in Israel to check out.