The USD/INR has supplied a choppy range the past two days of trading for speculators as it has tested higher resistance and then provided a reversal lower. The most recent burst of buying for the USD/INR the past two days significantly saw the 75.1500 resistance mark hold and a reversal has developed. Early trading this morning continues to demonstrate selling of the USD/INR as it trades near technical support which could be meaningful.
The current trading vicinity of 74.7000 to 74.75000 could prove an inflection point for speculators, particularly if they are looking for risk appetite to reemerge and create downward momentum. The past month of trading has seen plenty of trading action within the 74.4000 to 74.8000 levels. Two days ago, when the 74.8000 resistance level faltered a flurry of buying was seen for the USD/INR. Speculators should watch the 74.7000 to 74.8000 junctures carefully in order to gauge momentum.
Trading the USD/INR remains a battle of technical perception combined with prevailing risk sentiment. Support and resistance levels are rather tight in the USD/INR this morning and it is suggested that traders use limit orders to pursue momentum. If the 74.7000 level is broken downwards and its value consolidates below this level it may prove an opportunity to sell the USD/INR.
The choppy trading of the USD/INR reflects mixed sentiment in the forex markets, but it also suggests that current values may be within ranges that will fluctuate with polite movements. Speculators need to consider risk-reward scenarios. Is it more likely to see a larger bullish or bearish trend emerge? Technically, the USD/INR is trading nearly within the middle of its month-long value range. However, a look at a five-day chart for the forex pair shows the Indian Rupee is challenging support levels.
Risk appetite will be a key factor in the USD/INR today and tomorrow. Recent trading of the forex pair has experienced a challenge, but the USD/INR continues to offer an opportunity to test speculative selling positions if the 74.7000 is broken lower. However, if the 74.8000 mark is broken higher, traders may want to see if the USD/INR wants to test higher resistance again for short term opportunities.
Indian Rupee Short Term Outlook:
Current Resistance: 74.8000
Current Support: 74.6000
High Target: 75.1500
Low Target: 74.5000
