As of this writing the USD/INR is near the 83.2500 level and the month of November is likely to see the currency pair within this vicinity too. Traders of the USD/INR have most likely found an extremely tight range within the Forex pair and one that is not easy to speculate on, unless strict tactics are used to try and gain a profit. The USD/INR chart is one of the most intriguing technical charts you will see. The resistance level of the Forex pair appears to be working under the power of a very durable level near the 83.3000, but this has not happened by coincidence.
USD/INR Demands Very Little Detective Work for Speculators to Become Suspicious
While the one month chart for the USD/INR shows an incredibly strong resistance level, its support levels are equally entertaining. It does not take a detective to become suspicious while looking at the one month chart of the USD/INR, to understand that there is something being controlled within its Forex. The control is coming from internal mandates via the Indian government and being acted upon by the Reserve Bank of India. First off it is not a sinister plot against speculators; India is simply not letting the USD/INR trade in a free manner because they are trying to protect the value of the Indian Rupee.
It seems obvious that within the current risk adverse environment within the global markets the USD/INR should have traded above the 83.3000 level with stronger price action. However, this has not taken place and a rather tight price chart between the 83.1500 and 83.2800 are there for any technical trader to see plainly. Yes, the USD/INR has traded slightly below the support level of 83.1500 on occasion; this is because the Indian government doesn’t appear to mind a stronger Indian Rupee. However, one wonders where the value of the USD/INR would be without intervention. It seems likely a value around 84.0000 might have been seen the past few weeks of trading taking into consideration the global risk adverse conditions in the financial markets and strength of the USD internationally.
U.S Federal Reserve may have Little to No Impact on USD/INR Traders
- As a seemingly invisible hand guides the USD/INR within a tight trading range, speculators should use entry price levels and very limited take profit and stop loss ratios if they want to wager.
- While many folks are paying attention to the Federal Reserve, it will likely not raise the Federal Funds Rate on the 1st of November.
- If the Reserve Bank of India maintains the resistance level of the USD/INR near the 83.2900 to 83.3000 ratios, some speculators may want to gamble on the notion that lower moves will ensue.
- However, to do this a trader would need to put a selling order near these higher ratios and see if it ignites an order, this to pursue a reversal lower.
- Traders need to be careful in the USD/INR. Live market orders to enter the market are highly discouraged, this in case mandates from the Indian government change without a public statement.
USD/INR Outlook for November 2023
Speculative price range for USD/INR is 82.8400 to 83.4300
Traders should look at the one and three month charts of the USD/INR to gain a perspective regarding the rather intense resistance level which has been demonstrated in the currency pair. While a move to the downside may develop as risk adverse trading conditions globally become more tranquil, looking for strong moves lower in the next couple of weeks may be too optimistic. Traders need to remain realistic regarding their targets.
If support levels of 83.1500 and 83.1000 start to be challenged in a sustained manner, and the USD does lose momentum against other major currency pairs, then a sincere move lower could grow in strength. The USD/INR is an intriguing currency pair because India is turning into an economic giant, but its government is still being careful regarding its maintenance of the Indian Rupee’s value in free markets. Speculators who are pursuing the USD/INR need to acknowledge the trading landscape which exists in India and remain cautious.
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