After traversing important support recently the USD/INR has produced a sudden reversal higher which speculators can test.
Support near the 73.3000 juncture for the USD/INR proved to be an inflection point, but the move it produced was a bullish run higher and the forex pair tested high resistance levels yesterday. Trading the USD/INR the past two weeks has been difficult because of rapid price fluctuations and if a speculator has not had proper risk management ready within their trading account they have likely suffered.
However, the price range of the USD/INR remains within a solid and known testing ground, its values are not new and speculators should remain comfortable if they are resilient and are willing to swim the forex pair’s turbulent waters again. The reversal higher yesterday in the USD/INR may actually benefit traders who believe the bearish trend is going to renew sooner rather than later. Early trading this morning has seen a bearish trend resume after yesterday and early this morning’s highs near the 73.7000 juncture.
Trading conditions in the USD/INR remain fast and traders need to use limit orders so they do not get trampled by price fills which could surprise them. Selling the USD/INR within a value range of 73.5000 to 73.6000 is an enticing proposition, but traders need to be conservative and be ready to move quickly in order to participate.
Global risk appetite remains intriguing when correlated to the Indian Rupee. Coronavirus remains newsworthy and prominent within India because the nation has confirmed there are at least 5 million known cases of infection from the pandemic. However, the government continues to be proactive and transparent regarding its handling of the situation regarding its citizens and its management of the economy. And as global risk sentiment remains intact this helps the outlook for India and its financial assets.
The USD/INR has experienced choppy trading conditions the past month, but it remains within a solid bearish mid-term trend. Yesterday’s reversal higher may prove to be an opportunity for speculators who are willing to pursue selling the USD/INR even as volatility is demonstrated.
The critical juncture of 73.3000 remains a focal point. The value has certainly produced reversals higher recently, but it also serves as an intriguing and seemingly capable target for traders near term who believe its value will be attained again.
Indian Rupee Short Term Outlook:
Current Resistance: 73.6800
Current Support: 73.3900
High Target: 73.8000
Low Target: 72.3000