EUR/ILS may rise 181 - 246 pips

3.9520 is our pivot point.

Our preference

The upside prevails as long as 3.9520 is support.

Alternative scenario

The downside breakout of 3.9520 would call for 3.9411 and 3.9346.

Comment

The RSI is above 70. It could mean either that the pair is in a lasting uptrend or just overbought and therefore bound to correct (look for bearish divergence in this case). The MACD is above its signal line and positive. The configuration is positive. Moreover, the price is trading above both its 20 and 50 period moving average (respectively at 3.9529 and 3.9446). Finally, the EUR/ILS has crossed above its upper Bollinger band (3.9655).

Supports and resistances

4.0055 **

3.9990 *

3.9924 **

3.9859

3.9678 last

3.9563

3.9520 **

3.9411 *

3.9346 **

Number of asterisks represents the strength of support and resistance levels.