Per trading platforms for the moment, the USD/ILS is near the 3.22500 vicinity as financial institutions gather their thoughts in the wake of yesterday’s U.S Federal Reserve rate cut and insights.
On last Friday the USD/ILS went above the 3.24350 ratio momentarily and by this past Monday was traversing near the 3.20050 level before reversing upwards. However, the so-called price range in the Israeli Shekel remains quite consolidated. Even yesterday’s anticipated interest rate cut from the Federal Reserve did not cause too much fright within large traders of the USD/ILS.
The Israeli Shekel remains strong and it has created a rather steadfast test of the 3.20000 to 3.30000 range since the third week of October. And now since the start of December the battle in the USD/ILS has developed largely between 3.25000 and 3.20000 with outliers. And it appears the rather stronger nature of the Israeli Shekel will remain.
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Near-Term Speculation and Mid-Term Thoughts
Day traders may believe that the USD/ILS offers an opportunity to sell the currency pair when perceived resistance levels are touched. Folks who anticipated a stronger USD centric tone in Forex yesterday after the U.S Fed’s interest rate cut have walked away likely disappointed for the moment. Many people anticipated a rather hawkish sounding Fed after the interest rate cut yesterday, but the notion that a shuffle of the Fed’s leadership is in play over the next several months leaves the door open to another interest rate cut.
The USD/ILS is likely not going to break to new lows in a rapid manner either. Israel’s economic situation apparently is improving and an interest rate cut by the Bank of Israel appears to be possible. The lower price realm of the USD/ILS may be seen as rather comfortable for the time being and allow technical traders the ability to take advantage of short and near-term charts.
Betting on the USD/ILS Carries Risks
The USD/ILS is not a high volume currency pair. The spread in the USD/ILS can be challenging, and firm entry price orders is highly advised for speculators so they do not get killed by wide bids and asks which are common.
- Also a majority of the trading is done in the USD/ILS during a limited time window when large financial institutions in Israel are working.
- In the wake of yesterday’s Fed interest cut the ability of the USD/ILS to remain within the lower elements of its known price range may suggest additional downside may be entertained today.
- Traders should note that Friday’s are rather light volume days for the USD/ILS also, and that Monday’s early price movement can sometimes be frantic.
USD/ILS Short Term Outlook:
Current Resistance: 3.22600
Current Support: 3.22390
High Target: 3.24550
Low Target: 3.20300
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