USD/ILS heads back towards the 2011 low at 3.3514 – Commerzbank

The USD/ILS pair is surging higher from its near 25-year low at 3.1131 and still targets the 2011 low at 3.3514, Axel Rudolph, Senior FICC Technical Analyst at Commerzbank, reports.

Key quotes

“A potential Hammer is in the process of being formed on the monthly candlestick chart. If confirmed by the end of January monthly chart close, a long-term bullish reversal pattern would be confirmed.” 

“The 61.8% Fibonacci retracement of the September-to-January decline at 3.3465 and the 2011 low at 3.3514 are still in focus. Further up sits strong resistance between the July 2014 and January 2018 lows at 3.3794/3.4007 which we expect to cap. These levels represent our medium-term upside targets.” 

“Slips should find support between the early December low and the late December and early January highs at 3.2445/33. Further support can be spotted along the 55-day moving average at 3.2016 and also at the 3.1737 January 7 low. While it underpins, we will remain bullish.”