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USD/ILS: 3.30 Remains Intact, Ground Invasion Risks Brewing

ISRAEL
  • USD/ILS managed to hold topside resistance at 3.30 in yesterday's session tracking USD weakness lower close marginally below the 50dma – forming a spinning top candle (indicates uncertainty).
  • Early downside resumed today to retest support at 3.2733, but was met with buying pressure marginally above the 100dma.
  • With tensions escalating on threat of a full-fledged ground invasion, we may see volatility persist in the near-term.
  • 3.30 represents major resistance and should be fairly sticky, but a close above this level would be bullish in the near-term – opening up the 200dma and the Feb-March double top at 3.35.
  • Delays to the UNSC response to Sunday leaves the trajectory of the conflict in PM Netenyahu's hands who looks set to push for grater escalation.
  • Local CPI data will be released today with y/y figures expected to lift to 0.9% vs 0.2% prior. Intraday Sup1: 3.2739, Sup2: 3.2709, Res1: 3.2928, Res2: 3.2963
MNI London Bureau | +44 020-3983-7894 | murray.nichol@marketnews.com
MNI London Bureau | +44 020-3983-7894 | murray.nichol@marketnews.com

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