USD/ILS surges higher to target the 2011 low at 3.3514 – Commerzbank

USD/ILS made a key day reversal which changed its medium-term trend from bearish to bullish. The pair formed a low at 3.1131 and is now heading back towards the 2011 low at 3.3514, per Commerzbank.

Key quotes

“Now that a key day reversal has been made yesterday and a clear rise above the two-month resistance line at 3.2001 has been seen the 3.2605/45 mid-to-late December highs and also at the 3.2792 December 7 high are targeted.” 

“Once USD/ILS has risen and closed above the 3.2792 high on a weekly chart closing basis, a bullish reversal will have been confirmed with the 2011 low at 3.3514 then being back in the frame.”

“Slips should find support between the breached two-month resistance line and the 55-day moving average at 3.2000/3.1868.” 

“Below the recent low at 3.1131 lie the June 1994 and August 1995 highs and also the March 1996 lows at 3.0790/3.0570. These we do not expect to be revisited.”