The relatively narrow range of the USD/INR is beginning to look like an attractive avenue for speculators. With a seemingly comfortable resistance level of 76.2000 to use, traders may search for selling opportunities around the 75.9000 to 76.0000 juncture.
Trading volumes of the USD/INR are not very large and the Indian government does try to manage the range of the Indian Rupee carefully. However, the 75.2000 to 76.1000 value spread has become dominant and trading opportunities within this range abound for those who use proper risk management.
Global market conditions this morning appear to be more tranquil. The sense that the broad markets will behave with better sentiment short term could give a boost of confidence to traders who have the desire to sell the USD/INR and seek better values for the Indian Rupee. Forex has provided consistent fireworks the past week with choppy conditions as financial institutions seek a tranquil environment and have not found paradise.
If traders are not hit with a sudden burst of news that affects short term sentiment, current technical levels will be put to the test in the USD/INR. Traders may be inclined to presume the stronger trend of the Indian Rupee remains intact and could spur on additional short positions of the USD/INR. A short term support level of 75.7000 looks to be a good target for those who can enter the market above this juncture, patience needs to be practiced as the waters churn and better values for the Indian Rupee are sought.
If the 75.7000 level falters traders should then begin to target values at 75.5000 short term. The Indian Rupee does not trade in a vacuum and it is affected by global sentiment. News being generated about Coronavirus and the way governments are trying to manage the crisis continue to develop on a daily basis. Also causing shifts in market conditions are the announcements of governments via stimulus regarding various economic packages. The USD/INR is vulnerable like all forex pairs to overall sentiment. However, the rather interesting resistance level of 76.1000 which appears strong may provide those with an optimistic short term outlook to sell the US Dollar against the Indian Rupee.
Indian Rupee Short Term Outlook:
Current Resistance: 76.1000
Current Support: 75.7000
High Target: 76.2000
Low Target: 75.5000
