USD/ILS Analysis Today - 04/07: Nervous Downturn (Chart)
(MENAFN- Daily Forex) After a momentary surge higher as the USD/ILS opened this week of trading, the currency pair has been able to produce a slight selloff, but nervous conditions remain.
The USD/ILS trading pair is near the 3.74710 ratio as of this writing. Conditions remain rather nervous technically for the USD/ILS as it remains within the higher elements of its mid-term range. Today the U.S is celebrating its Independence Day, day traders need to understand very light Forex volumes will prevail which could cause slow but sometimes volatile results that do not make a lot of sense.
The USD/ILS has produced a downturn after resistance appeared to prove vulnerable and higher ratios were tested. The currency pair did spike to the 3.78925 vicinity briefly in very early trading when the week began but technically after this momentary surge, a reversal lower to 3.74197 developed. The low on Monday was also the low for this week thus far. With today and tomorrow remaining on the trading schedule it is possible support will continue to be tested, but because of lackluster volumes the USD/ILS results should be viewed cautiously by speculators.
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Higher Realms in Sight despite Lower Short-Term Move
Trading conditions in the USD/ILS remain filled with fragile behavioral sentiment as Israel lingers within a complex maze consisting of military conflict and economic concerns spurred on by the war, and domestic politics which do not yet appear to be capable of a calm solution. Financial institutions have kept the USD/ILS within the upper boundaries of its mid-term values. Day traders are advised to look at one and three month charts.
While the short-term has produced a solid downturn since yesterday's high around the 3.77660 ratio, traders should be cautious if they expect the trend lower to persist. Because of lighter than normal volumes today, traders may want to simply sit on the sidelines for the near-term. Tomorrow the U.S will release its Non-Farm Employment Change numbers and Average Hourly Earnings, but it is questionable how much of an impact these results will have on Forex and the USD/ILS. Financial houses will remain rather inactive tomorrow in the U.S; traders should expect impetus to come next Monday and Tuesday as full volumes return to Forex/ILS Support and Resistance via Near-Term Wagers
The lower realms for the USD/ILS may look attractive to short-term traders, but they should be careful. The ability of the USD/ILS to continue pressing up against resistance is a warning nervousness remains within the Israeli Shekel and this is not going to disappear like magic. The 3.77000 realm has been challenged higher most of this week.
Day traders should use take profit and stop loss orders today if they are participating in the USD/ILS. Because volumes will be light, there will be a need for patience too in what could be rather slow moving currency markets. The support ratio of 3.74600 to 3.74450 should be watched today. The last time the USD/ILS traded in a sustained manner below the 3.74000 level was on the 25th of June.
USD/ILS Short Term Outlook:
Current Resistance: 3.74950
Current Support: 3.74640
High Target: 3.77300
Low Target: 3.73990
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