USD/INR: Flick of Switch Ignites Bear Move

The USD/INR has ignited bearish momentum with a quick thrust as risk appetite has revisited the global marketplace.

In early trading today the USD/INR has suddenly spiked lower and is near the 73.10000 juncture as values shift with speed. As the forex pair hovers near this important level, speculators can rest assured the price action of the Indian Rupee has proven that it is within a fast but known range as it moves with a rapid pace. The month of September provided many choppy trading days for the USD/INR. The first day of October is proving challenging too.

Like all forex pairs, the amount of leverage used makes the difference between a polite trade with movements that can be watched in a relaxed mode, or if a speculative trade has been over-leveraged the position can be categorized as emotionally turbulent.  The USD/INR forex pair offers plenty of advantages because of its rapid price swings, but this also brings a certain amount of inherent danger when traded with positions that do not have sufficient risk management.

Trading this morning has been fast with swift downward momentum developing as the USD/INR seems to indicate it wants to challenge support in a quick manner.  The spike lower which has occurred as risk appetite appears to have also shown signs of igniting again in global equity indices; this is proving a combustible spark for the USD/INR.  However, the violent move this morning also suggests that the USD/IND is seeing large institutional and government institutions active within the forex pair.

Because of the rapid movement seen in the USD/INR this morning, judging correct short term support and resistance levels becomes a dangerous task. The forex pair is now hovering above the 73.0000 level, but a moment ago also showed the ability to puncture the important psychological juncture. Traders should be careful with the USD/INR and use limit orders and make sure their price fills are not getting trampled on by spikes which wreck their short term positions.

The USD/INR is likely going to calm down as the trading day progresses and allows for tranquil calculations. Traders need to pay attention to their trading monitors carefully and make sure they are not entering a position into a landscape that is moving too fast.

Indian Rupee Short Term Outlook:

Current Resistance: 73.4500

Current Support: 73.1000

High Target: 73.6500

Low Target: 72.9500

USD/INR

Robert Petrucci
Robert Petrucci has worked in the Forex, commodity, and financial profession since 1993. Important aspects of his work involve risk analysis and advisory services. As an advisor in a Family Office he maintains a conservative approach for wealth management and investments. Robert also works in private finance with investors and companies delivering financial and management services.