On Tuesday and Wednesday of this week the USD/ILS challenged mid-term highs, and as of this morning although slightly below the upper part of its near-term values the currency pair is near 2.98270.
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After a jump higher on Monday and Tuesday and a challenge of the 3.00000 level momentarily, the USD/ILS has been able to move slightly lower and is near the 2.98270 realm. The lower depths of the USD/ILS are still within sight, but the move higher since last Friday has not seen a strong fight lower demonstrated yet. Day traders have been given volatility to take advantage of the past handful of days.
The USD/ILS is correlating to the broad Forex market which has seen USD centric strength emerge since last Wednesday. The USD/ILS has moved away from its 2.93000 realm and been able to present upwards momentum. However, the past handful of hours has seen the USD/ILS start to sustain signs of lower price action. The currency pair is not a widely traded asset and speculators should watch the spread of the USD/ILS via bids and asks for an indication regarding its price action. The wider the spread often means not enough volume is being seen to warrant anything but entry price orders.
Sentiment and Long-Term Trend of the USD/ILS
The move higher in the USD/ILS will be welcomed by many export businesses operating out of Israel. The ILS has been extremely strong and values below the 3.00000 mark are seen as being detrimental for some Israeli commerce abroad. However, since the 30th of April the USD/ILS has traded in a sustained manner below the 3.00000 mark. The strength of the Israeli Shekel over the long-term has delivered a significant trend.
On the 1st of June the USD/ILS actually traded below the 2.80000 and since then has incrementally climbed. It may be interesting to note that on the 8th of June the USD/ILS was traversing near its current values and slowly moved lower again and by the 15th of June was targeting the 2.90000 level. It has been the past handful of days that has created the upwards momentum. While the U.S Fed is a reason for fueling some nervous sentiment in the USD/ILS, it has likely been nervous results on U.S equities which has created the most risk adverse reactions in the broad Forex market.
Challenge Ahead for USD/ILS Day Traders
The near-term will continue to be choppy for the USD/ILS. Day traders should not get overly ambitious about their targets in the USD/ILS near-term and therefore use quick hitting targets.
A sentiment shift seems to have overtaken near-term outlooks in U.S equities and this may continue to spark some risk adverse thinking for financial institutions until nerves are soothed.
The USD/ILS above the 3.00000 will not get many complaints from Israeli exporters, but they might not see their wish granted either.
The strengh of the long-term trend lower cannot be completely forgotten quite yet.
USD/ILS Short Term Outlook:
Current Resistance: 2.98310
Current Support: 2.98050
High Target: 3.00200
Low Target: 2.97800
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