Forex Market: USD/ILS daily forecast

Yesterday’s trade saw USD/ILS within the range of 3.4560-3.4752. The pair closed at 3.4648, losing 0.14% on a daily basis.

At 7:42 GMT today USD/ILS was up 0.35% for the day to trade at 3.4770. The pair broke the first key daily resistance level and touched a daily high at 3.4794 at 6:30 GMT.

Fundamental view

United States

The United States probably recorded a government budget deficit of 96.0 billion USD in July, according to market expectations, after a surplus of 70.519 billion USD during the previous month. The largest budget deficit on record was registered in February 2012, or 231.677 billion USD. A wider than projected deficit would have a bearish effect on the greenback. The Financial Management Service, US Treasury is to publish the official figure at 18:00 GMT.

Israel

Israeli trade balance probably produced a deficit at the amount of 1.500 billion USD in July, according to the median forecast by experts, following a deficit figure of 1.781 billion USD in the prior month. Nations balance of trade registered a record high deficit, amounting to 2.334 billion USD in October 2012. The trade balance, as an indicator, measures the difference in value between country’s exported and imported goods and services during the reported period. It reflects the net export of goods and services, or one of the components to form nation’s Gross Domestic Product. Generally, exports reflect economic growth, while imports indicate how strong domestic demand is. In case the trade balance deficit contracted more than projected, the shekel would receive support. Bank of Israel is to release the official data at 10:00 GMT.

Technical view

According to Binary Tribune’s daily analysis, the central pivot point for the pair is at 3.4653. In case USD/ILS manages to breach the first resistance level at 3.4747, it will probably continue up to test 3.4846. In case the second key resistance is broken, the pair will probably attempt to advance to 3.4939.

If USD/ILS manages to breach the first key support at 3.4554, it will probably continue to slide and test 3.4461. With this second key support broken, the movement to the downside will probably continue to 3.4363.

The mid-Pivot levels for today are as follows: M1 – 3.4412, M2 – 3.4508, M3 – 3.4604, M4 – 3.4700, M5 – 3.4796, M6 – 3.4892.

In weekly terms, the central pivot point is at 3.4521. The three key resistance levels are as follows: R1 – 3.5001, R2 – 3.5315, R3 – 3.5795. The three key support levels are: S1 – 3.4207, S2 – 3.3727, S3 – 3.3413.