The USD/INR is near the 82.5000 level as of this writing while demonstrating rather fast conditions with spurts of volatility. The past handful of days within the USD/INR has seen wide gaps generated and whipsaw-like movement which has created a speculative testing ground for those wagering.
The value range of the USD/INR has been like a whipsaw as it gyrates in both directions with rather violent thrusts. However, the USD/INR has remained in a rather known price realm within the upper tier of its long-term trading and this may be attractive for speculative bets.
The behavioral sentiment is not only producing nervous trading results in the USD/INR, but throughout Forex. The difference is the acknowledgment the USD/INR has not been able to create a solid bearish movement that has been sustained, while other major currency pairs have been able to create some downward momentum.
Resistance has Proven Somewhat Durable in the USD/INR
Higher values in the USD/INR have produced what appear to be rather durable resistance levels. Tuesday’s high screamed all the way up to 82.9180 thereabouts, yesterday’s high was around 82.7110 momentarily, this morning’s high has been 82.6690. The incremental downward trend may be a signal that behavioral sentiment believes the USD/INR is still in overbought territory. The problem is that support levels have also looked durable recently.
USD/INR has Climbed Upwards since the Start of December
- The low for the USD/INR this December was on the 1st, when the currency pair traded near the 80.9500 level.
- Yesterday’s U.S Federal Reserve interest rate hike was expected, but global financial houses remain nervous regarding the Fed’s outlook which appears to be potentially reactionary, even as many economic analysts believe inflation pressures are becoming more moderate.
This week’s low in the USD/INR was on Tuesday and around the 82.3490 ratio. However, this low is still higher than the last week’s lows which saw support levels incrementally climb. This notion of escalating support levels will make many speculators who have a bearish perspective nervous – and they should be.
While the USD/INR has produced higher price movement since early December, the consolidated higher range displayed this week with very choppy conditions highlights danger. Risk management is essential. If a trader wants to be contrarian and pursue selling positions they cannot be faulted, but caution is needed. Realistic targets lower should be used. The 82.5000 level can be used as a gauge for the moment. It appears the USD/INR is fighting for equilibrium and that a move lower may develop in the near term, but when (and if) this event will trigger is still in question. Until then volatile price action should be expected.
USD/INR Short-Term Outlook:
Current Resistance: 82.5700
Current Support: 82.4300
High Target: 82.6740
Low Target: 82.3500
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