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.
The information contained in this document was obtained from sources believed to be reliable, but its accuracy or completeness cannot be guaranteed. Any opinions expressed herein are in good faith, but are subject to change without notice. No liability accepted whatsoever for any direct or consequential loss arising from the use of this document.
Recommended Content
Editors’ Picks
EUR/USD nears 1.0800 on broad US Dollar weakness
Optimism continues to undermine demand for the American currency ahead of the weekly close. EUR/USD hovers around weekly highs just ahead of the 1.0900 figure.
GBP/USD reconquers 1.2500 with upbeat UK GDP
Following BOE-inspired slump on Thursday, the British Pound changed course and trades around 1.2530. Better-than-anticipated UK GDP and a weaker USD behind the advance.
Gold resumes advance and trades above $2,370
XAU/USD accelerated its recovery on Friday, as investors drop the USD. Dismal US employment-related figures revived hopes for a soon-to-come rate cut from the Fed.
XRP tests support at $0.50 as Ripple joins alliance to work on blockchain recovery
XRP trades around $0.5174 early on Friday, wiping out gains from earlier in the week, as Ripple announced it has joined an alliance to support digital asset recovery alongside Hedera and the Algorand Foundation.
Euro area annual inflation is expected to be 2.4% in April 2024
Euro area annual inflation is expected to be 2.4% in April 2024, stable compared to March. Looking at the main components of euro area inflation, services is expected to have the highest annual rate in April.