Forex Market: USD/ILS daily trading forecast

Yesterday’s trade saw USD/ILS within the range of 3.7135-3.7532. The pair closed at 3.7350, gaining 0.30% on a daily basis.

At 6:42 GMT today USD/ILS was up 0.15% for the day to trade at 3.7405. The pair touched a daily high at 3.7409 at 6:41 GMT.

Fundamentals

United States

The index of existing home sales in the United States probably gained 1.0% to a level of 5.10 million in September compared to August. In August compared to July existing home sales dropped 1.8% to 5.05 million. Julys level of 5.140 million has been the highest since September 2013.

The sample of data encompasses condos, co-ops and single-family houses.

Statistical data on existing home sales is often used along with statistical figures regarding the new home sales and pending home sales, with the major objective being to draw a conclusion how nation’s housing sector is performing, regardless of interest rates. The most active house-purchasing period in the United States is usually between the months of March through June. Therefore, in case statistical data revealed a sudden drop in the number of homes sold rather than an improvement during this period, this would be considered as a signal of weakness in country’s housing market.

The report on existing home sales usually does not cause a real direct impact on US economy. Actually, this effect appears to be minimal, due to the fact that nothing is produced with the mere sale of an existing home. In terms of economic activity, the sale of an existing house may be related only to interior design and purchases of new furniture.

The reason markets pay a certain attention to existing home sales report is that it reveals much about the general course of nation’s economy. A major part of the population considers a house as a sign of wealth and, unlike the money wealth, which is concentrated in certain regions of the country and held by the wealthiest representatives of the population, ”housing wealth” is evenly distributed across the country.

In case the index increased more than anticipated, this would have a bullish effect on the US dollar. The National Association of Realtors (NAR) is to release the official figure at 14:00 GMT.

Israel

Confidence among consumers in Israel probably was little changed in September, with the corresponding index coming in at a reading of -25, from -26 in August. This indicator reflects expectations of consumers in regard to changes in their household financial capabilities, household saving plans, the general economic situation in the country, levels of unemployment etc. during the upcoming 12 months. The index is an arithmetic average with equal weights, calculated from the combination of responses to four questions. It is based on a sample of 760 respondents, aged 21 and older.

Confidence is measured on a scale of -100 to +100. A reading of -100 implies a lack of confidence, while a reading of 100 is indicative of extremely high confidence. Zero values imply neutrality. In case the index improved more than anticipated, this might provide support to the local currency, as higher confidence suggests greater willingness to spend and, respectively, accelerated economic growth. Israels Central Bureau of Statistics will release the official index reading at 10:00 GMT.

Pivot Points

According to Binary Tribune’s daily analysis, the central pivot point for the pair is at 3.7339. In case USD/ILS manages to breach the first resistance level at 3.7543, it will probably continue up to test 3.7736. In case the second key resistance is broken, the pair will probably attempt to advance to 3.7940.

If USD/ILS manages to breach the first key support at 3.7146, it will probably continue to slide and test 3.6942. With this second key support broken, the movement to the downside will probably continue to 3.6749.

The mid-Pivot levels for today are as follows: M1 – 3.6846, M2 – 3.7044, M3 – 3.7243, M4 – 3.7441, M5 – 3.7640, M6 – 3.7838.

In weekly terms, the central pivot point is at 3.7207. The three key resistance levels are as follows: R1 – 3.7665, R2 – 3.8042, R3 – 3.8500. The three key support levels are: S1 – 3.6830, S2 – 3.6372, S3 – 3.5995.