On early Monday morning the USD/ILS sunk to within the 3.09900 vicinity, this after spiking to a high of almost 3.15288 earlier that day following the weekend in which financial institutions battled their nervousness. The lows seen on Monday did not touch depths seen on Friday and Wednesday from the previous week, but they kept the lower realm of the USD/ILS clearly within sight. The currency pair is near 3.12825 as of this writing, but that is via a wide spread that shows a big differential between bids and asks.
The Iranian war continues, and the fifth week of confrontation which Israel is a part of will start this weekend as the conflict transpires. The end of the military actions by the U.S and Israel are likely not going to end in the near-term. However, the Israeli Shekel remains one of the strongest currencies in the world. On the 27th of February the USD/ILS was near the 3.14000 level and slightly higher, which is above the current level for the currency pair.
Calm Financial Institutions and Wagering
The USD/ILS is not a widely traded currency pair. Price action for the USD/ILS remains a wagering ground that should be practiced by those with some familiarity with the way Israel banks function. There is trading on Friday but typically lighter volume. However, the couple of past Friday’s have seen a lot of price action and tests of emotions.
Financial institution trading the USD/ILS tend to trade heavily on Thursday’s, this as they position themselves for the approaching weekend. Friday is typically a shorter day of trading for Israeli banks. However, trying to guess where sentiment is going to lurch in the midst of a war is a dangerous game, except to say the USD/ILS while having produced choppiness has also continued to produce rather calm results.
Return to Strongest Realms for the Israeli Shekel
As always traders need to maintain strict risk management while wagering. The notion that if resistance levels get tested in the USD/ILS above the 3.13000 level and up to about the 3.14000, that the currency pair takes on an overbought look may be correct.
However, there is always the possibility of sudden developing news that can cause a sentiment shift.
The USD/ILS has gone to higher ground the past two Fridays with a bit more volume than is normal.
Downturns have occurred on Mondays as events are digested by financial institutions, this as the Iranian conflict is sustained.
Yet, betting on the same scenario to occur is dangerous.
Looking for quick targets and reversals may be attractive in the USD/ILS, but it remains a rather difficult currency pair to wager on for retail traders who are inexperienced.
USD/ILS Short Term Outlook:
Current Resistance: 3.13100
Current Support: 3.12520
High Target: 3.14100
Low Target: 3.10500