The USD/ILS has sent a shift upwards in the past handful of days and as of this writing is above the 3.61600 level with quick fluctuations.
The USD/ILS is near the 3.61612 price ratio as of this writing with typically fast fluctuations being seen via the bid and ask action. The currency pair has shown an incremental rise the past handful of days with a slight bullish streak. On Tuesday the USD/ILS approached the 3.64450 vicinity, traversing values last seen in the middle of January.
The USD/ILS did challenge the 3.70000 level in the first week of January. The USD/ILS has come off of Tuesday’s highs but its ability to sustain prices above the 3.60000 mark is a warning sign that financial institutions have turned a little more nervous regarding their outlook. Are they bracing for an escalation between Israel and Hamas again?
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USD/ILS Higher as Broad Market Shows Other Tendencies
The move higher in the USD/ILS the past handful of days and its traverse of higher values has not been violent, the currency pair has not been volatile. However, the slight bullish move does not correlate to the broad Forex market which has begun to show signs of USD centric weakness starting to see momentum increase.
Day traders of the USD/ILS should consider that risk premium has crept into the currency pair again the past week and this may be a reason for the buying trend. The question speculators should contemplate is when and how financial institutions will start to look at the USD/ILS as being in overbought territory. The currency pair was traversing a rather steady price range between 3.53500 and 5.59500 from the first week of February until the end of the month.
Speculative USD/ILS Potential and Behavioral Sentiment
The USD/ILS does have risks attached to its speculative trading. Behavioral sentiment remains cautious surrounding the currency pair, but certainly there have been solid signs of stability too in the USD/ILS. The month of February saw a solid test of lower prices and this was because financial institutions were starting to price in more optimism.
- While the USD/ILS has seen buying the past handful of days, the currency pair after touching highs on Tuesday did show the ability to move lower.
- This morning’s low for the USD/ILSD did touch the 3.59720 vicinity briefly before experiencing more buying.
- Tomorrow the U.S will release job numbers, but this might not influence the USD/ILS too much as behavioral sentiment continues to influence the currency pair.
- Traders may want to use resistance levels as places to look for short and near-term reversals lower, but speculators should not get overly ambitious because financial institutions are likely nervous about their outlooks and remain cautious.
USD/ILS Short Term Outlook:
Current Resistance: 3.61700
Current Support: 3.61400
High Target: 3.60100
Low Target: 3.62900
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