The USD/ILS continues to produce a bearish trend and the 3.25765 ratio is being tested as of early this morning following the U.S Federal Reserve’s anticipated interest rate cut yesterday.
The USD/ILS has shown a clear ability to maintain its lower realms, and the price early this morning near the 3.25765 level is certainly within the lower elements of its long-term values. Financial institutions dealing with the USD/ILS are obviously feeling confident about the prospects for Israel as the shadows of military conflict which have hovered over the nation for over two years evaporate incrementally.
The ability to move lower and maintain a steady bearish trend in the USD/ILS have been quite evident for a while. The USD/ILS is now testing values last seen on a consistent basis in the spring of 2022. The USD/ILS in order to be traded technically needs to acknowledge that sentiment for the Israeli Shekel is quite strong. The potential that the USD/ILS is targeting the 3.20000 level needs to be considered.
Day Traders Need to be Realistic
While the USD/ILS has tracked lower and resistance levels have proven to be dependable, day traders should not get overly ambitious. Volumes in the USD/ILS remain low compared to the major currency pairs, this creates a danger for wide spreads and price fills that are not always expected. Entry price orders need to be used by smaller traders in the USD/ILS.
Looking for lower values may need patience too in the USD/ILS. The price velocity of the currency pair is not strong compared to major currency pairs which enjoy more volume, therefore conservative leverage while needed also creates what can be considered sleepy speculative positions for those looking for more of a casino like environment. However, cautious traders that persist in looking for lower price action and using solid stop losses may be quite happy about their results recently.
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Near-Term Targets and Trading Tactics
The U.S Federal Reserve delivered its expected interest rate cut yesterday. However, the Fed did not say if they are inclined to cut the Federal Funds Rate again in December.
- The USD/ILS continues to show signs of remaining in a bearish trend.
- The USD/ILS does correlate to the broad Forex market, but the Israeli Shekel has been a strong currency for the past two years.
- The ability of the USD/ILS to now traverse within a price range that it has not seen in over three years is quite remarkable.
- There is a temptation to believe the USD/ILS may be aiming towards the 3.24000 to 3.22000 values but traders need to be realistic, and speculators as always should be prepared for slight reversals higher and the possibility of near-term headwinds.
USD/ILS Short Term Outlook:
Current Resistance: 3.26200
Current Support: 3.25600
High Target: 3.28900
Low Target: 3.24300
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