The USD/INR is trading near 79.6700 as of this writing, which is soundly within the scope of a higher price range when a long term approach is studied. Incrementally the USD/INR has continued to creep higher, but it has not achieved this via one way avenue that is easy to control, there have been sharp reversals lower on occasion which makes risk taking tactics for speculators essential.
The past week of trading has produced a rather consolidated range it can be argued, one that has offered trader the ability to take advantage of fluctuations in the USD/INR currency pair. Yesterday a low of nearly 79.5820 was briefly traded which tested lower realms from the 1st of September. However, technically most traders would have to concede the USD/INR remains within shouting distance of apex highs.
Likely Interest Rate Hike from U.S Fed Coming this month and USD/INR Outlook
The USD/INR was bolstered late last week when global financial houses saw an increase in nervous sentiment. Behavioral attitudes in Forex are risk adverse and the USD remains within stronger boundaries against many currencies. The USD/INR may have room to explore lower depths with occasional selling, but there continues to be a ‘floor’ of support which may exist due to the lack of clarity regarding the U.S Federal Reserve’s hawkish interest rate policy after this month.
Technically it may be tempting to suggest the USD/INR has been overbought, but bullish speculators may also see an opportunity to take advantage of reversals lower which linger near important support. If current ratios of 79.6400 to 79.6000 prove to be durable, this could be a signal additional buying may occur in the near term.
Early Highs Yesterday to the 79.9500 reacted with Strong Selling
- The USD/INR mirrored many Forex pairs which are anchored by the USD yesterday. After attaining short-term highs a reversal lower occurred.
- The USD/INR remains within the upper tier of its price range and this suggests the incremental moves higher may have further room to explore upwards.
Traders should remain cautious with the USD/INR and not get overly ambitious regarding the potential of any chosen direction. The near term is likely to see choppy conditions flourish, particularly if financial houses remain skittish regarding economic outlooks and the potential moves of central banks. Technically the USD/INR may appear to be too high, but until the trend demonstrates a violent selling burst, wagers that seek upward momentum could become worthwhile.
USD/INR Short Term Outlook:
Current Resistance: 79.7290
Current Support: 79.6300
High Target: 79.8390
Low Target: 79.5555
Ready to trade our Forex analysis today? We’ve made a list of the best brokers to trade Forex worth using.