As of this writing the USD/ILS is trading near the 3.70300 level, this after touching a low around the 3.69230 vicinity yesterday. Last week on the 29th of November the USD/ILS moved below the 3.67000 level momentarily. On early Friday of last week the USD/ILS then jumped higher and touched the 3.75725 area. Trading this week in the currency pair has shown incremental moves lower, but reversals higher have certainly been experienced.
Financial institutions of the USD/ILS have likely digested the continuing war being fought between Israel and Hamas. Higher values which developed in the beginning of the war saw the USD/ILS trade above the 4.00000 level, but a consistent selloff since then has returned the currency pair to values seen in early August.
The war between Israel and Hamas has been underway for two months. Trading conditions in the USD/ILS will certainly factor any new developments from the war into the value of the currency pair, but domestic Israeli economic and political issues have clearly taken center stage again. And the importance of USD centric viewpoints once again is most important for the USD/ILS.
Range of the USD/ILS show Consolidation
Since the 16th of November until now the USD/ILS has traded in rather tight range consisting of 3.69000 to the 3.75000 ratios. Yes, there have been some outliers, but the lower move produced last week for example was brief. Technical traders should know that most Israeli banks are absent from the Forex market on Fridays, so tomorrow’s results from the U.S jobs numbers may create volatility on early next Monday for the currency pair. However, the range of the USD/ILS may continue to prove rather tight.
Speculators participating in the USD/ILS will likely be looking for quick hitting targets and use existing resistance and support levels as a place to ignite their wagers. The USD/ILS may remain rather firmly within its known range until next Wednesday’s U.S Federal Reserve FOMC Statement.
USD/ILS Trend now Raises Questions for Speculators
- Financial institutions may believe the current value of the USD/ILS is within a polite equilibrium.
- Choppy conditions are likely to continue into early next week, but with rather tight outcomes, meaning quick hitting trades in the USD/ILS should be used by speculators.
- Overly ambitious positions will likely prove difficult to attain for short-term USD/ILS traders.
USD/ILS Short Term Outlook:
Current Resistance: 3.71100
Current Support: 3.69990
High Target: 3.73500
Low Target: 3.69200
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