USD/ILS Today – Analysis 04/07: Nervousness?

USD/ILS Today – Analysis 04/07: Nervousness?
USD/ILS Today – Analysis 04/07: Nervousness?
  • The USD/ILS pair is trading near the 3.74710 zone at the time of writing.
  • Conditions remain quite nervous technically for the Dollar/Shekel as it remains within the upper elements of its medium-term range.
  • Today the US is celebrating its Independence Day, day traders need to understand that very light Forex volumes will prevail which could cause slow but sometimes volatile results that do not make much sense.

The Dollar vs. Shekel has pulled back after resistance seemed vulnerable and higher ratios were tested. The currency pair briefly reached the 3.78925 area in early trading of the week, but technically, this momentary rise was followed by a pullback to 3.74197. Monday’s low was also the low of this week so far. Support may be tested further today and tomorrow, but due to thin volumes, speculators should take a cautious view of the Dollar vs. Shekel results.

Trading conditions in the pair remain filled with fragile behavioral sentiment as Israel remains within a complex labyrinth formed by military conflict and economic concerns spurred by the war, and domestic politics that still do not seem able to find a peaceful solution. Financial institutions have kept the USD/ILS within the upper bounds of its medium-term values. Day traders are advised to keep an eye on the one- and three-month charts.

Although there has been a solid pullback from yesterday’s high around the 3.77660 area in the short term, traders should be cautious if they expect the bearish trend to persist. Due to lower than normal volumes, traders should stay on the sidelines in the short term. The US will release non-farm payrolls and average hourly earnings figures tomorrow, but the impact of these results on the currency market and the dollar against the shekel is questionable. Financial houses will remain rather quiet tomorrow in the US; traders should expect the impetus to come next Monday and Tuesday, when full volumes will return to the Forex.

The lower realms for the Dollar/Shekel may look attractive to short-term traders, but they should be careful. The pair’s ability to continue pushing against resistance is a warning that there remains nervousness within the Israeli Shekel and this is not going to magically disappear. The 3.77000 area has been challenged to the upside for most of this week.

Traders should use take profit and stop loss orders today if they are trading USD/ILS. Given that volumes will be thin, patience will also be required in the potentially slow-moving currency markets.

Today we will have to watch the support ratio of 3.74600 to 3.74450.

The last time the Dollar against the Shekel traded consistently below the 3.74000 level was on June 25.

Current Resistance: 3.74950

Current Support: 3.74640

High Target: 3.77300

Minimum Target: 3.73990

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