USD/ILS Analysis Today - 6/11: Calm Sentiment (Chart)

(MENAFN- Daily Forex) The USD/ILS jumped higher early this morning as global Forex became volatile as it became clear Donald trump was about to become President-elect, then a reversal lower took place.

• The USD/ILS is trading near the 3.73900 mark as of this writing.
• A high this morning was seen near the 3.76800 vicinity early today as financial institutions positioned as results from the U.S election were being examined.
• However, as some other currencies continue to see weakness against the USD as of this moment, the Israeli Shekel has stabilized. Technical traders may claim it is because the USD/ILS was simply overbought.
• However, the currency pair remained under highs generated last week when the 3.80000 level was consistently challenged above.

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News of Donald Trump's election victory in Israel is likely seen as good news by many financial institutions which may be led to believe he will be able to initiate a more tranquil outlook for the Middle East politically. Obviously solving the Middle East conflict remains a complex puzzle and there are difficult days ahead, but behavioral sentiment may be more positive among large players in the USD/ILS and the U.S Federal Reserve Tomorrow

While global Forex will likely remain rather choppy over the next day and the USD/ILS will also be influenced by nervous dynamics, the U.S Federal Reserve will step into the limelight tomorrow. The Fed is expected to cut its interest rate by 0.25. Last week's lackluster U.S economic data certainly gives the Fed reason to remain rather dovish Thursday and possibly the next few months.

While many traders may be focused on the outcome of the U.S election today and early tomorrow, USD/ILS speculators may have been anticipating a victory by Trump and this may start to work as a source of resistance for the currency pair near-term. Why? Because it is possible financial institutions believe Trump will deliver more stability via their outlooks. And Forex trading, particularly with the USD/ILS has a lot to do with outlook. Behavioral sentiment has been and remains nervous for the Israeli Shekel regarding domestic economic and political issues, but the USD/ILS may have gotten the news financial institutions wanted to hear Values Last Week and Questions About Potential Support Levels

Trading in the USD/ILS will not be easy. Many problems still shadow the currency pair. There is talk about a possible military action by Iran taking place sooner rather than later. However, if Israel can remain relatively tranquil near-term, the Fed's interest rate cut tomorrow (if it happens) could play into the notion some believe the USD/ILS may have further room to trade lower.

• Yet, it must be stressed support may prove durable around the 3.73400 to 3.71500 until financial institutions feel more comfortable.
• For the moment looking for nearby support as a target for a take profit area for selling positions may be a reasonable wager.
• The near-term could remain choppy for the USD/ILS because of the many moving parts politically and economically via Israel and the U.S Federal Reserve.

USD/ILS Short Term Outlook:

Current Resistance: 3.74200

Current Support: 3.73600

High Target: 3.75100

Low Target: 3.72200

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