While uninformed day traders who counted on an opportunity to take advantage of the USD/ILS as the war with Iran continues, the currency pair actually still demonstrates the Israeli Shekel is very strong and a loss of value in the ILS is simply not occurring. The current price of the USD/ILS is hovering within the 3.10050 vicinity as a wide spread between bids and asks are being seen. The Israeli Shekel is not a heavily traded currency pair, but the ability of the USD/ILS to lend insight into the thinking of financial institutions is helpful.
The ability of the USD/ILS to sustain lower price thresholds and continue to battle the 3.10000 ratio and sometimes go below is rather astonishing considering Israel is in the midst of a war with Iran and is absorbing missile attacks. Financial institutions trading the Israeli Shekel continue to keep the USD/ILS within the lower tier of its long-term values, which displays confidence in their outlooks. The 3.10900 to 3.11100 look like active resistance above for the moment.
Lows Seen and Speculative Ratios for Day Traders
Because of the lack of massive volume in the USD/ILS day traders who are attracted to the currency pair because of present conditions need to understand entry price orders should be used. The wide spread in the currency pair if ‘filled’ via price in a manner that wasn’t expected by a market order could make trading the USD/ILS difficult. The currency pair did touch the 3.12900 vicinity on early Monday with a spike higher, this as global markets showed fear regarding the surge in WTI Crude Oil prices.
However, the move higher even on Monday in the midst of very nervous conditions did not touch the highs seen on the Friday before the Iran war started. Nor did the price surge early this past Monday touch prices when the USD/ILS opened on early the 2nd of March, a Monday, following the war’s first weekend, this as the 3.15000 levels and above were challenged. In other words, financial institutions are betting on a solid outcome for Israel. Yesterday’s low in the USD/ILS challenged the 3.07200 level.
USD/ILS Quick Hitting Trades are Not Easy to Find
Speculators attracted to wartime price action need to understand pursuing the USD/ILS is not likely going to produce super quick trading opportunities.
Due to the lack of volume, day traders do need some patience while trying to enter a trade using entry price orders.
And the same day traders should be using take profit targets that are placed and can be executed, this while also understanding the bids and asks spread might make it look like a trade should be executed, but sometimes is not due to a lack of enough orders.
Looking for further downside in the USD/ILS is tempting.
Conservative traders might want to wait for higher values to ignite selling positions too.
USD/ILS Short Term Outlook:
Current Resistance: 3.10900
Current Support: 3.09800
High Target: 3.12500
Low Target: 3.08200