USD/ILS Analysis Today 23/05: Low Range, Mid Support (Chart)
Date
5/23/2024 2:51:48 PM
(MENAFN- Daily Forex) The USD/ILS is trading within the lower part of its near-term range, this after having touched a low yesterday which challenged values which came within shouting distance of mid-term support again.
The USD/ILS continues to correlate to the USD rather well. Yesterday's low of nearly 3.66133 touched marks from one week ago, and also came within sight of values seen on the 1st of April. The ability of the USD/ILS to maintain its incremental bearish trend is noteworthy, but also creates the prospect of speculative opportunities. The USD has been weaker across Forex, but the past couple of days have demonstrated a bit more strength and major currencies have seen less price velocity. Thus, tight ranges have become common.
Last night's release of the U.S Federal Reserve's FOMC Meeting Minutes may have surprised some regarding the cautious tones regarding inflation, but it should not have. The Fed has been warning about prolonged inflation for a few months and U.S economic reports up until a couple of weeks ago consistently were highlighting inflation as a problem. Yet, since the last week of April and beginning of May, the USD has shown weakness as financial institutions have started to shift towards a more dovish Fed outlook – and they still may be proven correct USD/ILS and Shadows from the U.S
The USD/ILS price movement has danced in step with USD weakness and today the U.S will release PMI reports for Manufacturing and Services. If these reports come in weaker it could spur on more bearish activity for the USD/ILS. However, tomorrow's Consumer Sentiment reports via the University of Michigan could be a factor too, particularly via the Inflation Expectations reading.
Recent economic data from the U.S has shown signs the economy is slowing and consumers are tightening their spending. If the inflation data from tomorrow's report comes in below expectations this could help the USD/ILS again trade lower. However, betting on the outcome of these reports before they are published is wagering. Traders also have to keep in mind this coming Monday is a holiday in the U.S and this means Forex volumes will be much lower early next week, this could create a bit of volatility and odd fluctuations in the USD/ILS which appear suddenly.
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Potential for Volatility before the Long Weekend for the USD/ILS
The ability of the USD/ILS to trade lower early yesterday and stay within sight of short and near-term depth shows financial institutions are still leaning towards bearish instincts with the currency pair.
Support levels near the 3.66500 to 3.66200 should be watched, if they prove durable in the short-term this could provide the ability for quick hitting jumps higher that are slight. When the U.S economic data is released later today via the Purchasing Managers Index readings, if there are surprises this could create volatility in the USD/ILS.
USD/ILS Short Term Outlook:
Current Resistance: 3.67225
Current Support: 3.66620
High Target: 3.69775
Low Target: 3.64410
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