USD/ILS Analysis Today - 11/09: Bounce Higher Awaits (Chart)
Date
9/11/2024 3:09:34 PM
(MENAFN- Daily Forex) The USD/ILS is trading at higher values not seen for almost a month, this as the broad Forex market awaits the U.S Consumer Price index data which will be released later today.
After touching a low of nearly 3.62280 on the 30th of August, the USD/ILS has climbed higher. The price of the currency pair at this moment is near the 3.76450 mark and sideways trading has been produced in the early hours today. The move higher in the USD/ILS exchange rate could be translated into a correlated bullish turn in the broad Forex market, but the notion that financial institutions believed the currency pair had been oversold in late August is a definite possibility.
Economically Israel remains in a difficult position because of the ongoing Middle East conflict. Though the USD/ILS has not been extremely volatile, the price action in the currency pair certainly reflects domestic concerns which have crept into the Israeli Shekel as the expense of fighting a war and dealing with the conflict's impact on GDP is considered. However, correlation between the USD/ILS and the broad Forex market still certainly exists.
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Remarkably when a lot of other major currencies trading versus the USD last Friday saw lower values, the USD/ILS didn't reflect this via technical charts. The low on Friday following the U.S jobs report simply tested values seen on Wednesday of last week around the 3.69500 ratio. Today's U.S Consumer Price Index reports will shake financial assets and traders of the USD/ILS will react too.
The ability of the USD/ILS to trade at highs not seen in nearly a month raises suspicions that financial institutions in Israel and abroad may be nervous about the current health of the Israeli Shekel. If the U.S inflation numbers are weaker than anticipated today and the USD/ILS does not see solid selling action this could raise more alarm bells among speculators/ILS Correlations and Potential Bearish Action
However, if the USD/ILS does begin to sell off today after the U.S CPI numbers are released this could set the table for a lower move in which the 3.70000 level again is tested as support. Yet, day traders are advised to be cautious with the USD/ILS today.
The higher price action in the currency pair highlights that nervousness is affecting the attitudes of financial institutions. Yes, the higher move may simply be because of a lack of clarity regarding the U.S Fed's interest rate decision next week. But recent price action in the USD/ILS has been suspiciously bullish and the higher range now being tested is likely to produce more volatility. The currency pair does look overbought, but traders betting on a downturn need to be cautious over the next two days.
USD/ILS Short Term Outlook:
Current Resistance: 3.76700
Current Support: 3.76250
High Target: 3.77600
Low Target: 3.73990
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