USD/ILS Analysis Today - 19/09: Anxious Trading Results
Date
9/19/2024 3:00:15 PM
(MENAFN- Daily Forex) The USD/ILS has reacted the past two days with higher value that is challenging important resistance levels, this as financial institutions try to gauge the near-term which has produced an increase of tenisons.
The USD/ILS had been trading rather comfortably around the 3.74500 vicinity on Tuesday of this week when news from the region once again became a focus for financial institutions. Tuesday's rather eye catching developments in Lebanon via the detonation of pagers caused an instant reaction in the USD/ILS. The currency pair leapt to nearly 3.79300 and then saw additional volatility which caused whipsaw trading results.
Yesterday's additional news from Lebanon regarding another series of explosions via devices supposedly being used by Hizbolah kept the USD/ILS within the higher realms of its value. Late yesterday's interest rate cut from the U.S Federal Reserve didn't cause the USD/ILS to sell off strongly, showing financial institutions are cautious about their outlooks as they ponder possible Middle East conflict escalating.
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Early this week the Israeli government also admitted that the ongoing war situation continues to cause economic harm. Fiscal concerns regarding the expenditures as the conflict grinds on and the impact to private sector production in corporations in Israel are problematic. While the Israeli Shekel has not fallen off a cliff, it is precarious and the highs now being treaded should be watched as the 3.80000 level remains in sight. The Israeli Shekel does trade heavily on USD centric considerations, but short-term concerns in the Middle East certainly are a factor in value.
However, before traders look for more upside based on the potential of greater conflict in the Middle East, they should remember financial institutions have experience. The USD/ILS has shown resilient resistance around the 3.79400 realm the past couple of days and the current price of the currency pair is near the 3.77315 as of this writing. Traders that believe the USD/ILS is overbought cannot be blamed, but timeframes must be considered/ILS Wagering in the Near-Term
Traders of the USD/ILS should be done carefully in the near-term. Speculators are urged to use risk management and guard against the potential of sudden spikes. It should be mentioned if price velocity does break out in the USD/ILS in the coming days it will likely be to the upside. Peace is not about to suddenly be announced in the Middle East. There is a greater chance of news developing that will make financial institutions more nervous, compared to the potential that financial institutions are suddenly going to be made calm. Yet, it tensions can become calmer, financial institutions will react with some limited selling.
The highs in the USD/ILS since late November 2023 show values around the 3.85000 resistance level as a ratio that appears to create headwinds lower. Having said that in October of 2023, when tensions boiled over and financial institutions were at a peak of nervousness, the USD/ILS did trade near the 4.00000 level for a handful of days. Day traders are advised not to hold onto their positions over this weekend unless they have the emotional fortitude, risk management, and deep enough pockets to withstand news developments from the Middle East. Expect volatility in the USD/ILS over the short-term and into Monday of next week.
USD/ILS Short Term Outlook:
Current Resistance: 3.77700
Current Support: 3.77000
High Target: 3.83100
Low Target: 3.75010
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