In early trading this morning the USD/INR has seen another short term bullish trend emerge. Since the start of September, the forex pair has seen a rather intriguing buying trend demonstrated. Late in August the USD/INR actually tested important support, but then a reversal developed. The Indian Rupee was not able to sustain or break through the 72.9000 support level with any consistency and although the USD/INR certainly touched early March values a reversal higher has been evident.
However, technical traders will also notice that the USD/INR has not been able to surpass resistance levels produced in late August. The forex pair has displayed the ability to trade within the lower boundaries of its one-month price range. Resistance near 73.6000 appears to be a developing inflection point for the USD/INR. If the 73.6000 in punctured higher it could certainly create a high target of 74.0000 within the mind of some traders.
Speculators may be skeptical of this sudden bullish development which has been seen since the beginning of September. In fact, important support near the 73.000 juncture has been tested a few times also since the 3rd of September. This support level also is attracting plenty of interest from traders. The range of 73.0000 to 73.6000 has become critical in the short term and has given speculators an opportunity to technically take advantage of a rather choppy value band.
Trading in the USD/INR has seen rapid price momentum since the beginning of September. It is advised that traders use stop losses when speculating on the Indian Rupee. Global risk appetite remains a critical ingredient of the USD/INR and it can be viewed as a barometer of investor sentiment. The USD/INR has maintained a rather stable bearish trend mid-term, but there are certainly concerns short term about investor sentiment near term.
Selling the USD/INR within a price vicinity of 73.4800 to 73.5200 could be an interesting speculative opportunity to seek downward momentum for traders. Yes, you need to keep in mind resistance is very close, and if it is broken higher that it could certainly cause troubles. However, speculative risk-reward scenarios still favor selling the USD/INR in order to potentially take advantage of what may be a bigger move to the downside if bearish sentiment reignites.
Indian Rupee Short Term Outlook:
Current Resistance: 73.6000
Current Support: 73.2600
High Target: 73.8500
Low Target: 73.0000
