USDILS: LONG with careStill there is a room for upside. Your eyes should be watching any higher high for shorting within a couple of days.
USDILS trade ideas
USD/ILS 1H Chart: Pair waits bullish confirmationUpside risks dominated the USD/ILS exchange rate after the pair reversed from the lower boundary of a long-term ascending channel located at 3.5758.
The rate is trading near the upper boundary of a short-term ascending channel. Given that the currency pair is supported by the 55-, 100– and 200-hour SMAs, it is likely that a breakout from the junior channel occurs during the following trading sessions. A potential upside target is the monthly R2 at 3.6912.
By the large, it is expected that the exchange rate continues its increase until the Fibonacci 0.00% at the 3.7177 mark.
USD/ILS 1H Chart: Senior channel in sightThe Israeli Shekel has been appreciating against the US Dollar since the beginning of August after the pair reversed from the upper boundary of a medium-term channel at 3.7237.
As apparent on the chart, the pair is testing the lower channel line at 3.5700. From the theoretical point of view, a reversal and a breakout from a junior descending channel could occur in the nearest future Technical indicators for the 1W time-frames also support bullish scenario. A possible upside target for the following sessions is the 100-period (1D) SMA at 3.6233.
In case the Fibonacci 38.20% retracement at 3.5968 is not surpassed, the pair could breach the senior channel and aim for the weekly PP at 3.5430.
Channel Up on 1D. Long.USDILS has made its new Higher Low (Highs/Lows = 0.0000) on the secondary formation on 1D, which is a Rising Wedge. The primary pattern remains a long term Channel Up (RSI = 57.452, MACD = 0.015, B/BP = 0.0069). We are taking this opportunity to go long, TP = 3.744410.
USD/ILS 1H Chart: New medium pattern takes overThe situation on the USD/ILS charts is initially hard to understand, as the already broken patterns are still drawn on the chart.
Namely, the previously active ascending medium term pattern is still observable on the charts. However, one should concentrate on the new medium term descending pattern.
In the borders of that pattern a junior channel up pattern has already guided the currency rate up to the resistance line of the medium term pattern.
In regards to the near future, the pair is set to get squeezed in between the various hourly SMAs, lower trend line of the junior pattern and the resistance line of the medium term pattern. If the dominant pattern holds its ground, the squeeze should end in a break out to the downside.
USDILS Correct 50 % since its ultimate high of 2015 USDILS Correct 50 % since its ultimate high of 2015.
Market in USDILS isnot expected to start a consolidation movements. However, for shorter periods, USDILS is expected to drop down as a reversal from the Fibonacci level of ( 50%). while, at the same time , the data reveals for the US dollar are a little disappointed and FED members along with analytics start to speak loudly about the slowing the FED interest rate hike.
In September. 2018 Bank of Israel have to take a decision regarding the Israeli interest rate hike ( Depends on their inflation readings for the period).
expectations are hawkish.
back to technical analysis , USDILS is expected to correct back to 3.64 for the short period, unless it had broke the level of 3.71 then it is expected to hit 3.74 and then 3.805 respectively.
USDILS Head and shouldersA head and shoulders graph has formed, it looks like the head has been formed perfectly on a strong support level, this pair is very likely to rise in value. The price is currently moving in a range near the neckline, if the price is able to break this neckline, it is very likely that we could see massive bullish gains over the coming weeks. The RSI is in a good position for an upward movement. This pair is heavily influenced by economics and I advise anyone trading this pair to look at the fundamentals for both Israel and USA.
