Jordan analyzes USD/ILS as a short-term trade when major pairs lack setups. The price sits at the bottom of a well-defined range with bullish divergence in the histogram and weak RSI momentum, suggesting a buy near the bottom targeting the top of the range for strong risk-reward.
What's going on everyone? This is Jordan and it's time for another trading setup coming from the Traders Academy Club. Today I've decided to go, um, for something out of the majors, let's say, and we're going to talk about the dollar Israeli shekel. Uh, the reason is simple: if I'm not able to find anything on the majors or the miners, I start looking for opportunities elsewhere, whether this is going to be commodities or exotic pairs or any other type of instrument, right? So why did I pick this one? Well, kind of simple here. Check this out. Daily chart pushed up, and I do believe this is actually coming to deliver— let's go to weekly for a second— this is going to probably deliver a deeper pullback here. And I expect something like this to happen, likely going to continue lower off of these levels. Okay, that would be my assumption on the higher time frames. But again, back to the daily chart where things are kind of obvious. Um, we have a pretty decent range there on the daily chart, and we're currently at the bottom of it. There is a potential divergence forming here. Uh, just histogram managed to tick to the opposite direction. EMA is not there yet, which brings me to RSI. Let's quickly check out what RSI is showing there. All right, lack of momentum. So we definitely see that, um, the range is there and probably is going to hold. And of course, the idea is as long as this range holds, we want to be looking for buys, right? That's the bottom line here. So the very first target should be somewhere closer to the top, okay? And in case of a breakout, of course we need to follow up on how this structure will look, uh, once and if it goes and breaks. But basically this is the bigger view I have. All right, so that's it basically. Uh, as long as the range holds, looking for buy opportunities. We're currently at the bottom, which makes this trade absolutely fantastic in terms of a risk-reward ratio here. All right guys, if you have any questions, let us know and we'll get back to you as soon as possible. Have a good one.
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