- Having survived early Thursday’s sudden spikes lower the USD/ILS has produced a tight price range since then and early trading this morning has seen the 3.60000 level thus far emerge as resistance.
- Day traders who want to make speculative quick hitting wagers may be tempted to look for technical support and resistance levels to try and take advantage of the rather narrow value band. The USD/ILS is currently near the 3.59560 price.
Concerns remain on the horizon economically for Israel taking into consideration the lack of a cohesive political coalition looking beyond the mid-term, but for the time being financial institutions seem to be capable of brushing these worries to the side. The USD/ILS has regained equilibrium and the current price range might prove to be a testing ground the remainder of this week.
USD/ILS 3.60000 as a Barometer for Technical Traders
While most outside observers would not think of the 3.60000 level as a particularly important psychological mark for the USD/ILS, the currency pair has shown plenty of magnetic force since the middle of February regarding this value. The ability to sustain prices below the ratio for the time being may serve as a point for speculative bets in the short-term.
Tomorrow’s inflation data from the U.S via the Consumer Price Index numbers are sure to cause a reaction in the broad Forex market, last month’s results did cause a volatile wave within all the major currency pairs. The strong than expected results via the key inflation statistics in February caused strength to be flashed in the USD momentarily.
Short-Term Wagers and Consideration of U.S Data Results
Last Friday’s jobs numbers reports did not cause a major storm in the USD/ILS however, so traders may feel rather comfortable trading before tomorrow’s U.S CPI numbers. Yet, it the inflation results are higher than expected this might set off alarm bells again across Forex and cause USD strength to re-emerge suddenly. But if the numbers are weaker than expected, the USD/ILS may see some additional selling momentum develop. Traders should be cautious before tomorrow’s data release and consider not having an open position before the results are announced leading up to the CPI report.
- The current price band between 3.56100 and 3.60100 remain technically important for the USD/ILS in the short and near-term.
- Traders should use take profit and stop loss orders to make sure they guard against sudden reversals and spikes which could develop in an unexpected manner.
USD/ILS Short Term Outlook:
Current Resistance: 3.59980
Current Support: 3.58600
High Target: 3.60160
Low Target: 3.56170
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