FxNews—The U.S. dollar experienced a significant drop against the Israel Shekel from its October high of 4.08, which occurred ten days after Hamas’ terrorist attack in Israel.
Following this event, the bears pushed the pair below the 3.75 support level, and it is now testing this threshold as resistance. With the RSI indicator nearing the oversold area, this correction in the pair appears to have been anticipated.
USDILS Tests 3.7 Resistance Amid Bearish Trend
Upon closer inspection of the USDILS 4-hour chart, we notice the pair has formed several candlestick patterns near the 3.7 resistance level. Given that the primary trend is bearish, we are monitoring the pair to see whether it will complete its correction phase or break through the 3.7 resistance.
Should the pair rise to test the 38.2% Fibonacci level, this demand area could present an excellent opportunity to enter a sell order.