The USD/ILS has seen an upwards trend develop over the past month which is rather curious taking into consideration the broad Forex market has actually seen USD centric weakness grow.
The USD/ILS is near the 3.67175 ratio as of this writing with typical fast changes demonstrated, but within a known higher range. The USD/ILS has developed an upwards trend in the past month of trading, the currency pair was near the 3.54500 mark a month ago. The move higher in the USD/ILS has not correlated to the broad Forex market, which has seen the USD get weaker against many major currencies.
Consideration of the USD/ILS move upwards the past few weeks may indicate financial institutions believed the lows achieved in the currency pair in February were the result of too much selling. Support levels in the USD/ILS from the early summer of 2023 came into view. However, nervous conditions in financial institutions because of the belief that fighting would resume between Israel and Hamas may have factored into the buying produced recently. The ceasefire between Israel and Hamas has recently come to an abrupt end.
Behavioral Sentiment a Factor in the USD/ILS
The USD/ILS however did not jump violently as news of renewed conflict became known. Financial institutions have experience dealing with noisy developments when trading the Israeli Shekel and it is likely any nervousness had already been factored into the currency pair already. The USD/ILS has shown the ability to produce some downwards movement when the 3.67450 vicinity has been approached in the short-term.
Friday’s trading in the USD/ILS saw highs of nearly 3.68900 before going into this last weekend. And this higher price level may be a solid indication regarding where financial institutions believe the USD/ILS is overbought. The 3.68000 mark may continue to prove as durable resistance above in the near-term, and if lower ratios like the 3.67400 level still act as resistance in the short-term, this may mean some thoughts about potential downside in the USD/ILS are developing.
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USD/ILS Near-Term Trading Range
Day traders may believe the USD/ILS has actually been overbought within its currency price levels. Yes, new developments regarding Middle East conflict could develop suddenly, but it is also possible financial institutions have braced already for that potential.
USD centric weakness which has been seen in the broad Forex market the past few weeks has not been translated into the USD/ILS as highs have been attained over the past month.
Looking for downside may be tempting for wagers on the currency pair, but traders need to use risk management to guard against surprises.
The U.S Federal Reserve will release their FOMC Statement later today, but a cautious sounding Fed has been factored into the USD/ILS already.
USD/ILS Short Term Outlook:
Current Resistance: 3.67400
Current Support: 3.670100
High Target: 3.68200
Low Target: 3.65900
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