<p>Forex Trading Strategies for the USD/ILS Pair: Tips and Analysis</p><p>If you trade foreign exchange, you’re probably constantly on the lookout for possibilities to make a profit from your trades. In this post, we will walk you through the process of doing a technical analysis of the currency pair USD/ILS, as well as provide some advice to assist you in making profitable trades.</p><p>So, apparently during a hearing on the next state budget, Bank of Israel Governor Amir Yaron dropped a serious truth bomb by warning that an economic crisis could come out of nowhere. This news comes at a time when so many people have got serious concerns about the potential economic fallout, and the weakening shekel vs US dollar and other major currencies, due to the government’s judicial system overhaul. Plus, just a few days ago, the <a target=“_blank“ href=“https://www.forexlive.com/terms/c/central-bank/“ class=“terms__main-term“ id=“fa4d7425-bd4d-4362-8fdd-c310fa3df626″ target=“_blank“>central bank</a> raised its key lending rate to the highest level since 2008 in an effort to fight off <a target=“_blank“ href=“https://www.forexlive.com/terms/i/inflation/“ class=“terms__secondary-term“ id=“ad51a5a2-1afc-4f42-9e62-ea6faf6f90fa“ target=“_blank“>inflation</a> and a weaker shekel. </p><p>It’s all a bit weighing on the Israeli curerncy, to say the least. The USDILS pair is up a staggering 17.5% since its low in the summer. </p><p>USDILS technical anaysis on the weekly timeframe</p><p>The examination of the USD/ILS currency pair reveals a bullish pattern that only just emerged after breaking out of a consolidation period. This breakthrough might result in the creation of an ascending triangle, which offers traders two distinct opportunities to join the rally, depending on their preferences. But they need to be careful not to join right away since the forex pair might very soon be extended.</p><p>In the first possible outcome, there is a break above the red resistance on the upper band, which is then followed by a retest somewhere around 3.557. After the retest, buyers might enter the market with the expectation of a potential reward of climbing all the way to 3.888 but with the danger of falling below the 3.4 price level. This gives a reward-to-risk ratio of 2.5 to 1, which is quite favorable.</p><p>Waiting for a price retreat below the top band and then entering a long trade when it reaches that level is the second possible outcome of this scenario. This is a fantastic chance to make a purchase, with a possible return of 5:1 on the table.</p><p>Most news is noise for technical traders, but there are exceptions, and this is one</p><p>At this time, IMO, while trading USD/ILS, it is important to stay on top of fundamental news since it may have an impact on the market. For example, to follow what happens with the next votes on this possible reform. It must pass 3 readings in the Knesset – the Israeli house of representatives – and it passed the first one. Assuming that passing the next reading will help the dollar gain ground against the shekel, this is a case where following news can help the technical trader, too. Another example is to follow the Israeli Central Bank that may heavily purchase shekels in order to strengthen the shekel, which may result in a decline in the value of the forex pair.</p><p>Those that still do not want to follow the news, and want to stay purely technical, can work with alerts on the chart, or ‚buy stop‘ orders. A buy stop order is an order to purchase a security at a price above the current market price. It is used by traders to capitalize on potential price increases, such as in breakout trading strategies. The order becomes a market order when the specified price level is reached, but there is no guarantee of execution at the desired price, especially in volatile markets.</p><p>As the USDILS technical analysis video shows, it is recommended (even for buy and holders, and non traders) to make purchases in increments and save some funds in anticipation of prices falling further. AKA to average out a lower entry price. A method that may help decrease risk and maximize rewards is one that takes advantage of price fluctuations along the road and averages out partial gains and losses.</p><p>Conclusion: USD vs Shekel is strong and focus on the entries</p><p>In conclusion, the technical analysis of the currency pair USD/ILS reveals a bullish formation, which reveals two different trading scenarios as potential outcomes. Traders should also be abreast of fundamental news that may have an impact on the market and buy in gradually, providing opportunity for prices to fall. The video above shows where these entries can be made. Traders may maximize their risk-reward ratio and increase their chances of being successful if they follow these suggestions, but they must keep in mind that they are trading at their own risk and this is just another opinion. Visit <a target=“_blank“ href=“www.forexlive.com“>ForexLive.com</a> for additional views.</p>

This article was written by Itai Levitan at www.forexlive.com.

<ul><li><a target=“_blank“ href=“https://www.forexlive.com/news/us-january-pce-core-inflation-47-vs-43-expected-20230224/“>US January PCE core inflation 4.7% vs 4.3% expected.</a></li><li><a target=“_blank“ href=“https://www.forexlive.com/news/us-january-new-home-sales-670k-vs-620k-expected-20230224/“>US January new home sales 670K vs 620K expected</a></li><li><a target=“_blank“ href=“https://www.forexlive.com/news/umichigan-consumer-sentiment-for-february-670-versus-649-last-month-664-preliminary-20230224/“>UMichigan consumer sentiment for February 67.0 versus 64.9 last month (66.4 preliminary)</a></li><li><a target=“_blank“ href=“https://www.forexlive.com/centralbank/feds-mester-inflation-risks-still-tilted-to-the-upside-20230224/“>Fed’s Mester: Inflation risks still tilted to the upside</a></li><li><a target=“_blank“ href=“https://www.forexlive.com/centralbank/mester-fed-will-need-to-go-above-5-and-stay-there-for-awhile-20230224/“>Mester: Fed will need to go above 5% and stay there for awhile</a></li><li><a target=“_blank“ href=“https://www.forexlive.com/centralbank/feds-mester-still-think-we-need-to-be-somewhat-above-5-20230224/“>Feds Mester: Still think we need to be somewhat above 5%. Inflation is still too high.</a></li><li><a target=“_blank“ href=“https://www.forexlive.com/centralbank/feds-collins-recenf-us-data-confirm-case-for-more-rate-hikes-20230224/“>Fed’s Collins: Recenf US data confirm case for more rate hikes</a></li><li><a target=“_blank“ href=“https://www.forexlive.com/centralbank/feds-bullard-the-current-situation-may-fall-under-rubric-of-credible-disinflation-20230224/“>Fed’s Bullard: The current situation may fall under rubric of ‚credible‘ disinflation</a></li><li><a target=“_blank“ href=“https://www.forexlive.com/centralbank/feds-jefferson-wage-growth-is-running-too-high-to-be-consistent-with-2-inflation-20230224/“>Feds Jefferson: Wage growth is running too high to be consistent with 2% inflation</a></li><li><a target=“_blank“ href=“https://www.forexlive.com/news/dallas-fed-january-trimmed-mean-pce-price-idnex-63-vs-40-prior-20230224/“>Dallas Fed January trimmed mean PCE price idnex +6.3% vs +4.0% prior</a></li></ul><p>Markets:</p><ul><li>S&P 500 down 44 points to 3975</li><li>US 10-year yields up 6.6 bps to 3.95%</li><li>WTI crude oil up $1.19 to $76.58</li><li>Gold down $11 to $1811</li><li>USD leads, JPY lags</li></ul><p>Friday’s PCE inflation report certainly didn’t cool worries about rising prices as all the main numbers in the report aside from income ran hot. The market reaction was more of what we’ve been seeing lately — US dollar strength. </p><p>The data helped the dollar break through some resistance levels as it climbed to the highs of the year on most fronts (with GBP as a notable exception). AUD/USD broke through the 200-day moving average and fell to 0.6726, closing near the lows of the day and at the worst levels since early January.</p><p>USD/JPY continued to run and has now nearly filled in the December gap from the BOJ surprise. What’s interesting is that despite the rout in stocks, the yen was the worst performer today. That’s an indication the market is pricing in better global growth and higher rates everywhere. That’s a theme to watch in the week ahead as the calendar turns.</p><p>EUR/USD fell for the fourth consecutive day and is approaching the early-January low of 1.0479. The dollar is getting a broad lift from chatter about higher Fed rates. The derivatives market hinted at 5.41%, which is a decent chance of 5.50-5.75% this year while US 2s hit 4.81%, which is the highest close since 2007 and an enticing risk-free parking spot for two years.</p><p>It wasn’t a complete whitewash for the dollar though, as USD/CAD fell 60 pips from the highs as oil prices climbed to finish the week unchanged. We’re at the point where commodities and other growth-sensitive assets have to make a decision about whether to cheer a better near-term outlook or cower at the thought of higher central bank rates and a potentially recession in 2024.</p><p>Have a wonderful weekend.</p>

This article was written by Adam Button at www.forexlive.com.

<p>On the day:</p><ul><li>S&P 500 -1.0%</li><li>DJIA -1.1%</li><li>Nasdaq Comp -1.7%</li><li>Russell 2000 -1.2%</li><li>Toronto TSX -0.3%</li></ul><p>On the week:</p><ul><li>S&P 500 -2.7% — worst since Dec</li><li>Nasdaq Comp -3.3% — worst since Dec</li><li>Russell 2000 -3.1%</li><li>Toronto TSX -1.7%</li></ul><p>It was a rough one for US stocks but not as bad as it looked midday. The S&P 500 fell 45 points to 3974 after falling as low as 3947. There were a series of higher lows throughout the day, indicating that dip buyers are still lurking. The 200-day moving average held today on the first challenge.</p><p>The bigger story is the bond market with US 2s closing at 4.81%, which is the highest since 2007.</p>

This article was written by Adam Button at www.forexlive.com.

<p>When you zoom out and look at the weekly oil chart, all the volatility seems to spill away. There have been plenty of whippy moves in the past few months but it’s all taken place in a range of $70-85.</p><p>This week, oil bounced around again but closed almost perfectly flat on the week after a 99-cent gain today.</p><p>The bears are worried about inventories building in the US and muddling signs from China’s reopening. The bulls are encouraged by better global growth and Russian supplies stumbling.</p><p>Ultimately though, we’re right in the middle of the range and waiting for a break on one side or the other. At this point, I can’t imagine either side holding a great deal of conviction.</p>

This article was written by Adam Button at www.forexlive.com.

<p>The USDCHF is stretching to the January and 2023 high at 0.94069. The price just reached 0.94058. There is some symmetry in the daily chart for the year. The move to the downside from the high took 19 days. The move back to the upside in February is on day 16.</p><p>Looking at the chart, the low price reached on February 2nd took the price below the low floor area between 0.9081 and 0.91014. The low price extended to 0.90586 on the break of the floor, but momentum could be sustained and the price quickly started to rebound back to the upside. </p><p>With the dollar bias continuing the move higher with some pairs either testing or breaking through some key technical levels (the GBPUSD is testing its 100/200 day MA, the AUDUSD is testing its 100 day MA. The NZDUSD broken below both its 100/200 day MAs today), if the tilt continues, pairs like the USDCHF has the falling 100 day MA above at 0.9469 (and moving lower) and the 38.2% of the move down from the 2022 high at 0.94744 as targets above. </p><p>Both those levels are within a swing area between 0.9453 and 0.9479 (see green numbered circles).</p><p>Looking at the hourly chart, the price today moved above the topside trend line . That trend line will be at 0.9379 at the end of day. That level will be a close risk level for traders going forward especially if the price holds here. ON a break below, we could see more corrective action from the run higher. </p>

This article was written by Greg Michalowski at www.forexlive.com.

<ul><li>Fed needs to keep at rate hikes until inflation trend brakes lower</li><li>Says here view on the economy and inflation hasn’t been changed by the latest data</li><li>Data shows inflation not yet on trend to get back sustainably to 2% target</li><li>New <a target=“_blank“ href=“https://www.forexlive.com/terms/i/inflation/“ class=“terms__main-term“ id=“ad51a5a2-1afc-4f42-9e62-ea6faf6f90fa“ target=“_blank“>inflation</a> data affirms case for rate hikes</li><li>Asked about 25 bps vs 50 bps at March meeting, declines to say</li><li>Says 25 vs 50 bps discussion misses bigger picture</li><li>Says there’s more data and info to take on before debating rate rise sizes at March 21-22 meeting</li></ul><p>Again, she’s passing up an opportunity to be more hawkish than previously. She has previously said that rates need to get above 5% and stay there, so that’s not new.</p>

This article was written by Adam Button at www.forexlive.com.

<p style=““ class=“text-align-justify“>The dollar is moving higher amid the backdrop of <a target=“_blank“ href=“https://www.forexlive.com/news/equities-dribble-lower-ahead-of-north-american-trading-20230224/“ target=“_blank“ rel=“follow“>struggling equities</a> and also as Treasury yields nudge higher. 10-year yields in the US are now at the highs for the day, up 2.3 bps, to 3.904% and that is keeping the greenback underpinned.</p><p style=““ class=“text-align-justify“>We’re seeing fresh highs now for the dollar all across the board and in my view, USD/JPY and AUD/USD are two big charts to watch. The former is up 0.5% to 135.43 – its highest levels in a little over two months:</p><p style=““ class=“text-align-justify“>Buyers have been huffing and puffing to try and find a breakthrough above 135.00 and they might get their just rewards today.</p><p style=““ class=“text-align-justify“>Meanwhile, AUD/USD is starting to see a stronger downside momentum build as it trades to its lowest levels in seven weeks. The series of technical support levels outlined <a target=“_blank“ href=“https://www.forexlive.com/news/audusd-is-starting-to-see-support-lines-crack-under-the-dollar-pressure-20230224/“ target=“_blank“ rel=“follow“>here</a> are all giving way at the moment as the pair drops by 0.7% to 0.6765:</p>

This article was written by Justin Low at www.forexlive.com.

<p style=““ class=“text-align-justify“>It hasn’t been a good session for equities whatsoever, with it being a slow and steady grind lower through European morning trade. That has also seen the decently positive start for European stocks wither with most regional indices seeing red at the moment. Here’s a snapshot of things on the day:</p><ul><li>S&P 500 futures -0.6%</li><li>Nasdaq futures -0.9%</li><li>Dow futures -0.5%</li><li>Eurostoxx -0.5%</li><li>Germany DAX -0.5%</li><li>France CAC 40 -0.3%</li><li>UK FTSE +0.1%</li></ul><p style=““ class=“text-align-justify“>In turn, this is helping to keep the dollar underpinned with USD/JPY racing up to 135.40 now – up 0.5% on the day. Elsewhere, EUR/USD is trading to the lows at 1.0575 and GBP/USD is also down 0.3% now to 1.1980 currently. The antipodeans are still the laggards with AUD/USD down 0.7% to 0.6765 and NZD/USD down 0.5% to 0.6198 – both at the lows for the day as well.</p>

This article was written by Justin Low at www.forexlive.com.

<p style=““ class=“text-align-justify“>It all started on the morning of 24 February 2022:</p><ul><li><a target=“_blank“ href=“https://www.forexlive.com/news/putin-has-announced-a-special-military-operation-20220224/“ target=“_blank“ rel=“follow“>Putin has announced a Special Military Operation</a></li><li><a target=“_blank“ href=“https://www.forexlive.com/news/ukraine-capital-kyiv-has-declared-a-state-of-emergency-20220223/“ target=“_blank“ rel=“follow“>Ukraine capital Kyiv has declared a State of Emergency</a></li><li><a target=“_blank“ href=“https://www.forexlive.com/news/ukraine-says-that-kyiv-is-under-attack-from-cruise-and-ballistic-missiles-20220224/“ target=“_blank“ rel=“follow“>Ukraine says that Kyiv is under attack from cruise and ballistic missiles</a></li><li><a target=“_blank“ href=“https://www.forexlive.com/news/nato-confirms-officially-that-an-invasion-of-ukraine-has-begun-20220224/“ target=“_blank“ rel=“follow“>NATO confirms officially that an invasion of Ukraine has begun</a></li></ul><p style=““ class=“text-align-justify“>It is now a historic day for the entire world and things have never really been the same when it comes to geopolitical relations across the globe. Russia has since been heavily isolated by sanctions and China, while mostly trying to stay on the fence, has also seen recent relations with the US take a turn for the worse – though that has been coming for a while.</p><p style=““ class=“text-align-justify“>Meanwhile, the struggle is continuing for the commonfolk – especially those caught up in the war and neighbouring countries. It is an extremely tough period for many and I would like to express my deepest sympathies and prayers for those having to go through this difficult ordeal.</p><p style=““ class=“text-align-justify“>I would say that while markets have been quick to dismiss the headlines and move on from the issue, it is one that is still embedded within all of us and it is a reminder to everyone that life should not be taken for granted.</p>

This article was written by Justin Low at www.forexlive.com.

<p>On the daily chart below, we can
see that gold keeps on slowly trending downwards. After the break of the big
upward <a target=“_blank“ href=“https://www.forexlive.com/Education/technical-analysis-trendlines-20220406/“>trendline</a> that defined the uptrend since
November 2022, the precious metal just kept on losing ground. </p><p>The <a target=“_blank“ href=“https://www.forexlive.com/Education/technical-analysis-understanding-moving-averages-20220425/“>moving
averages</a> have crossed to the downside signalling a change in trend. The culprit
was the blockbuster <a target=“_blank“ href=“https://www.forexlive.com/news/us-nonfarm-payroll-517k-vs-185k-estimate-unemployment-rate-34-vs-35-estimate-20230203/“>NFP</a> report and the subsequent hot
key economic data that made the market to reprice higher future interest rates
expectations. Gold is inversely correlated with real yields, so the recent rise
in real yields is giving gold a hard time. </p><p>On the 4 hour chart below, we can
see how gold’s price action has been clean recently with downside extensions
followed by pullbacks to the broken <a target=“_blank“ href=“https://www.forexlive.com/Education/technical-analysis-support-and-resistance-20220405/“>supports</a> turned <a target=“_blank“ href=“https://www.forexlive.com/Education/technical-analysis-support-and-resistance-20220405/“>resistances</a>. </p><p>If the economic data keep on
surprising upwards, then we will most likely see even lower prices going
forward. On the other hand, if we start to get misses, then the market may
think that the January data was indeed just a blip, and we should see higher
prices instead. </p><p>On the 1 hour chart below, we can
see that right now the price is trading around the support zone at 1825. A
clean break below, especially if supported by a fundamental catalyst, will give
sellers conviction for lower lows, possibly finding some support at the 1800
round number. </p><p>For the buyers, on the other
hand, a bigger bounce from the current support accompanied by a new higher high
and the moving averages crossing upwards, should give conviction for a move
towards the resistance at 1855. </p>

This article was written by ForexLive at www.forexlive.com.