Israeli Shekel falls to new multi-year low vs US Dollar

Slobodan Drvenica Windsor Brokers

US Dollar Index

The Israeli Shekel fell to the lowest since February 2016 against the US dollar on Monday, as the currency lost ground on violent clashes in the region which started during the weekend.

The USDILS was holding within a larger uptrend since late 2021, which accelerated on Monday after trading started with gap-higher opening.

Fresh advance broke above previous tops at 3.88/ zone (Mar 2020/Nov/Dec 2016) as well as round-figure barrier at 3.90, hitting new multi-year highs at 3.935 zone.

Bulls so far do not show signs of fatigue as conflict is threatening to escalate, dampening demand for Shekel and prompting investors into safe-haven US dollar.

However, daily studies are turning overbought, which may result in a partial profit-taking, while Bank of Israel expressed readiness to support the currency and probably ease pressure on Shekel.

Limited dips are likely to provide better buying opportunities in current conditions, as bulls eye target at 3.95 and may challenge psychological 4.00 barrier in case of stronger acceleration.

Res: 3.9400; 3.9500; 3.9604; 3.9825.
Sup: 3.9060; 3.9000; 3.8805; 3.8666.

Author

Slobodan Drvenica

Windsor Brokers

Industry veteran with over 22 years’ experience, Slobodan Drvenica joined Windsor Brokers in 1995 when he was an active trader for more than 10 years, managing the trading desk and own account departments.

AUD/USD meets fresh supply and tests 0.7100 amid weak Australian PMIs

AUD/USD has come under fresh selling pressure and is testing 0.7100 in the Asian session on Wednesday. Australia's flash PMIs showed manufacturing slipped into contraction and services expanding slowly for a second straight month, renewing the pair's downside. Furthermore, a bullish US Dollar acts as a headwind for the pair as traders keenly await the crucial Trump-Xi summit on Thursday. Meanwhile, markets shrug off US-Iran indirect talks.

USD/JPY stands firm near mid-157.00s, close to two-week high

USD/JPY hovers around mid-157.00s in the Asian session on Wednesday, near two-week highs touched last Friday as the BoJ's dovish rate hike continues to undermine the Japanese Yen. Meanwhile, the US Dollar remains firm amid the Fed's hawkish stance, adding support to the pair, though JPY intervention fears cap further gains. Markets pay little heed to the completion of the round of US-Iran indirect talks ahead of Trump-Xi meeting.

Gold sticks to losses below $4,350 as USD buying remains unabated amid hawkish Fed

Gold struggles to capitalize on the previous day's goodish rebound from sub-$4,300 levels and meets with fresh supply during the Asian session. The US Dollar extends its recent uptrend, hitting a fresh high since July 30 amid the Federal Reserve's hawkish outlook. This, in turn, is seen as a key factor undermining the non-yielding bullion.

Cardano Bulls push higher as open interest, funding rates rise

Cardano (ADA) extends gains, trading above $0.262 after rallying more than 14% so far this week. The bullish momentum is supported by rising Open Interest (OI), positive funding rates and signs of whale accumulation. If buying pressure persists, ADA could extend its rally and target higher levels. Cardano’s derivatives metrics show strengthening conditions.

Trump meets Xi: Why markets are watching this summit so closely

United States President Donald Trump and Chinese President Xi Jinping are set to meet in Washington on Thursday for a summit closely watched by markets. After several months of easing trade tensions between the US and China, the meeting could determine whether the world's two largest economies extend their truce or enter a new period of uncertainty.

BoJ Recap: Not as hawkish as expected

The Bank of Japan (BoJ) raised its short-term interest-rate target to 1.25% from 1.00% in a 7-2 vote, marking another step in the normalisation of monetary policy and widely matching what everyone has been expecting for weeks.