Shekel's Struggle: Anticipating a Break Below Historical SupportOverview:
Our comprehensive analysis on the ILSUSD pair over the 1-month frame indicates a significant corrective phase, following a notable rise from 24 to 32. The pair has undergone a WXY correction, with distinct characteristics in each wave, leading to a pivotal point in its trajectory.
Correction Breakdown:
Wave W: Developed in a regular flat form, indicating a standard corrective pattern.
Wave X: Unfolded as a simple correction wave, resembling a regular flat in smaller time frames.
Wave Y: Manifested as a simple correction wave, taking a zigzag form in smaller time frames.
Recent Developments:
After peaking at 32, the ILSUSD experienced a sharp decline, retesting historical support at the 24 level. This correction has adopted a zigzag pattern:
Wave A: Displayed a clear five-wave impulse sequence in a smaller frame.
Wave C: Currently underway, with wave 3 slightly breaking the historical support at 24, followed by a retracement to 27, completing wave 4. We are now poised to enter wave 5.
Projected Movements:
Wave 5: Anticipated to conclude around the 61.8% Fibonacci level, with a target price of approximately 23. This marks the completion of the first leg of a new correction phase.
Long-Term Outlook:
The completion of this correction phase suggests a more extended downtrend for the Israeli Shekel. Following the end of the second leg of this correction, we anticipate the ILS could fall below the 23 level in the coming years.
Trading Strategy:
Investors and traders should prepare for potential opportunities in the downward movement of the ILSUSD pair. Caution is advised around the 23 price level, as the market could exhibit increased volatility and potential reversal signals.
Conclusion:
This analysis presents a bearish outlook for the Israeli Shekel against the USD, underlining the importance of vigilant market monitoring and strategic positioning to capitalize on these movements.
Disclaimer:
This is not trading advice. Please conduct your own research and consult with financial experts before making any trading decisions.
