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USD/ILS day traders looking for excitement and strong spikes in their Forex pursuits may want to look elsewhere, this unless they are using a large amount of leverage which equates into endless excitement and duress. The USD/ILS continues to flirt with the 2.90000 level and historically low values. The Israeli Shekel is very strong. Many businesses in Israel that export will say the ILS is too strong.
Even as concerns about the U.S Federal Reserve potentially having to change its interest rate stance and perhaps turning hawkish, the USD/ILS has held onto its lower values. The long-term lows however may appear as a buying opportunity to contrarians who think the currency pair has gone too low. But the trend in the USD/ILS has been bearish for over two years, and impetus will need to come via a change in Israel’s central bank policy and perhaps other fiscal means.
Sustained Lows and Durable Support in the USD/ILS
The USD/ILS could prove interesting as a wager by big players who believe some type of reversal must come. But will it? The USD/ILS at its current lows is testing values not seen in over thirty plus years. Speculators who are trying to judge the USD/ILS also via behavioral sentiment may find the going tough.
The sustained lows may become a rather interesting line in the sand via the Bank of Israel. The Israeli government is certainly hearing a chorus of complaints from its large export industry via technology companies. The costs of labor in the hi-tech sector of Israel is expensive and if a company is selling its products overseas and losing money on the exchange rate they are certainly not happy at this moment. Will the Bank of Israel try to make the Israeli Shekel weaker?
Day Trading and Speculative Guesses for the USD/ILS
Speculators in the USD/ILS know there isn’t a lot of volume in the currency pair. They should also be aware a holiday is starting soon in Israel and trading will become extremely thin later today and be almost nil tomorrow.
The notion that an escalation in the Iranian situation could start over the weekend is likely not being taken seriously at this juncture by financial institutions who have gotten used to the loud ceasefire that is prevailing.
Day traders may want to step away from the USD/ILS until Monday and allow for the holiday and weekend to pass.
The USD/ILS looks like an opportunistic vehicle to make quick hitting technical bets.
Risk management with the currency pair will remain crucial to guard against sudden surprises.
Traders should not get overly ambitious and look for limited moves in the USD/ILS as it remains within its lower territory and support levels show durability.
USD/ILS Short Term Outlook:
Current Resistance: 2.91200
Current Support: 2.90300
High Target: 2.93400
Low Target: 2.89700