In early trading this morning the USD/ILS is near the 3.72700 ratio. On Friday of last week, the USD/ILSD was near the 3.73000 mark. On Thursday of last week, the USD/ILS provided another round of rather solid selling as the currency pair slipped from the 3.80200 vicinity to its current price range. The low for this week in the USD/ILS was on Tuesday around the 3.69830 level. Simply put the last week of trading has seen a tight value realm emerge as speculative conditions for the USD/ILS have returned to rather regular technical and fundamental considerations.
Behavioral sentiment has calmed dramatically in the USD/ILS and the highs seen during the onset of Middle East strife have certainly eased. The price range of the USD/ILS is now touching marks seen in the second week of August. Bearish traders within the USD/ILS landscape may be looking for additional downward momentum. However, before traders get overly aggressive with selling positions, several considerations should be factored in.
USD/ILS Return to Normal Trading Conditions
Having sunk well below the lower depths of the USD/ILS seen in early October of this year when the currency pair was near the 3.80000 level, it is clear that trading is now considering U.S. economic conditions and domestic Israeli monetary policies in a normal manner. The USD/ILS was trading near the 3.58000 mark in the third week of July before a strong bullish trend started, the currency pair mirrored the upward trajectory of most major currency pairs based on the strong USD while moving higher into early October of this year.
Financial institutions are certainly leaning towards a mid-term outlook that is now seemingly focused on the potential of the USD becoming weaker, thus the USD/ILS will also have a sentiment that likely believes additional selling power will be seen in the currency pair. However, short-term traders need to remember that trading today and tomorrow in the USD/ILS will be extremely light. The U.S. is celebrating Thanksgiving today, and Israeli banks are closed on Fridays.
Traders looking to participate in the USD/ILS over these next two days may be much better off simply sitting on the sidelines and watching other currency pairs. The value of the USD/ILS will show rather interesting jumps based on buy and sell orders which will cause quick and dangerous changes of value going into the weekend because there is very little volume.
Next Week the USD/ILS will Prove of Interest
- Range trading today in the USD/ILS is likely to be quite limited, with the potential for sudden unexplained spikes. If a trader is participating today, solid risk management is urged.
- Early next week’s trading in the USD/ILS could prove rather intriguing. The USD may incrementally inch stronger in the near-term based on light trading without much reason, it is Monday and Tuesday of next week which will see a return to normal trading volumes.
USD/ILS Short Term Outlook:
Current Resistance: 3.73100
Current Support: 3.72500
High Target: 3.76100
Low Target: 3.69800
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