The USD/INR has traded lower early this week and remains within sight of intriguing support. As of this writing the USD/INR currency pair is near the 79.5800 level and has touched the 79.4950 ratio earlier this morning.
While important support is certainly within view from a short-term perspective, the USD/INR actually remains within the upper realms of long term technical charts. Lows of 79.4100 produced yesterday should be watched, if this line of support proves durable it could mean some consolidation is going to factor into the USD/INR.
Traders may get Tired of U.S data Considerations, But the USD/INR remains connected to Outcomes
The notion the USD/INR remains within its elevated value range from a long term perspective is not meant to belittle short term considerations. It is meant to point out that although the recent trend the past two days has presented reversals lower, that from a wider perspective the USD/INR continues to demonstrate incremental gains upwards which have proven stronger.
Along this path of thinking, speculators should keep in mind that jobs data will come from the U.S on Friday. While some analysts focus on the statistics of unemployment, the important number to watch late this week will be the Average Hourly Earnings report. The reason for this is because if the costs of paying employees remains elevated it means inflation considerations are likely still a strong force in the U.S economy. Coupled with the notion energy prices remain high, evidence suggests inflation is not about to disappear quickly and the U.S Federal Reserve will need to remain hawkish.
Short Term Considerations versus Long Term Concerns factor into the USD/INR
- The USD has lost strength in Forex the past couple of days against many major currencies, but the USD/INR like many currency pairs remain near elevated highs which signal nervous conditions remain.
- Current short term support near 79.5000 should be monitored by traders as a potential lynchpin for price action in the USD/INR today.
If the USD/INR remains above the 79.5000 ratio today in a sustainable manner, it could signal that financial institutions remain nervous about long term considerations. The move lower early this week has likely caused speculators reasons to look alluringly at lower values as targets, if the USD/INR falters further, however if support proves strong small incremental moves higher may find favor for quick hitting buying opportunities.
USD/INR Short Term Outlook:
Current Resistance: 79.6420
Current Support: 79.5150
High Target: 79.7900
Low Target: 79.3300
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