- The USD/INR is trading near the 85.8800 ratio as of this writing, but traders need to check on the price of the currency pair to compare actual price to the written price in this article, because rather fast fluctuations are being displayed due to a rather large bid and ask early display.
- However, recent momentum in the USD/INR has certainly shown an incremental move lower.
While the Reserve Bank of India is known to exert a heavy hand regarding the value of the Indian Rupee, the USD/INR has been able to show a rather solid correlation to the broad Forex market the past week. Traders of the USD/INR must acknowledge that the Reserve Bank of India seems to decide on a price range in which the currency pair will be permitted to trade, but with limited intervention. Meaning the USD/INR traders in a semi-free manner and the results from the past week technically in the USD/INR demonstrates this claim.
USD/INR Rush Higher on U.S Inflation Data Last Week and Turn Lower
Technical traders who look at one week and month charts will see that on last Wednesday the USD/INR reacted with a surge higher. This swift bullish move from the 82.9220 ratio towards a high of nearly 83.1200 was fast, but the swift price action certainly mirrored Forex results among other major currencies teamed against the USD. The Consumer Price Index report from the U.S had been published and surprised financial institutions with stronger inflation than had been anticipated making the USD stronger.
Nervous trading persisted the remainder of last week, but intriguingly the 83.0000 level became a target again. The USD/INR has traded below the important psychological level of 83.0000 on a rather consistent basis since the start of February. As the USD/INR came off its highs last week, the ability to work towards this price level was a sign the currency pair was being sold in a stronger fashion, but it also correlated to global Forex sentiment which showed the USD was considered as having been overbought.
Conditions Early This Week and the Momentum Lower
Early this week the USD/INR was able to penetrate the 83.0000 lower and has sustained the price action lower. Monday saw the USD/INR drop below the ratio, a retest occurred on Tuesday, but yesterday’s trading proved that current price action is showing some bearish tendencies. What needs to be noted is that the USD has gotten slightly weaker in the broad Forex markets too this week.
- The short-term price range of the USD/INR is showing a lot of fluctuation and traders are urged to use entry price orders to achieve a fill they expect.
- Current support for the USD/INR may provide traders with an opportunity to take advantage of the lower price range and test whether the Reserve Bank of India wants the current price levels to be maintained.
USD/INR Short Term Outlook:
Current Resistance: 82.89800
Current Support: 82.8450
High Target: 82.9690
Low Target: 82.8190
Ready to trade our daily Forex forecast? Here’s a list of some of the best regulated forex brokers to check out.