USD/INR Bounces Off of the Trend Line - 15 October 2014

Yesterday, I produced an article on the USD/INR pair, suggesting that the market was struggling to keep the uptrend going, but the US dollar bounced off of the uptrend line in order to strengthen against the Indian rupee again. With that being the case, it looks as if the market is continuing to grind higher, and although this market does tend to be a bit choppy overall, we do have a nice trend that still remains.

With that, I believe that this shows the US dollar strengthening against emerging markets in general, and with that I think that we will see a continuation of greenback being the strongest currency overall, and in times when there is more of a “risk off” attitude out there, the Indian rupee does fairly poorly as it is without a doubt one of the so-called “hot markets.”

Follow the trend.

The market like this, it tends to be more of a longer-term investment when you place a trade. As you can see, the day-to-day motion is pretty choppy binds only can do in a situation like this is simply follow the trend. By doing so, you have the ability to take large profits on big moves, but until you have the ability to trade longer-term, this may not be the pair for you.

A lot of newer traders get stuck in the idea of trading short-term charts only, and that’s almost impossible in some of these emerging market currencies. The Indian rupee of course is no different, and although it is a very dynamic economy, you have to keep in mind that it is still very volatile overall as there is a reason for using the phrase “emerging.”

Ultimately, I believe that this market is trying to get back to the 62 handle, but it might take a couple of weeks. If you have the ability and the patient’s, this is a wonderful trend that we have seen for several months, and as a result should continue to see for some time. At the 62 handle, I believe that there is a significant amount of resistance, but if we break above there, we could be looking at a move to 65.

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Christopher Lewis

Christopher Lewis has been trading Forex for several years. He writes about Forex for many online publications, including his own site, aptly named The Trader Guy.