USD/INR: Indian Rupee Trading Range Remains Calm and Uneasy

Robert Petrucci

While the USD/INR has taken on a rather calm appearance the past few days of trading, speculators may feel uneasy about the forex pair’s direction.

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Global risk appetite remains hard to gauge in early trading this morning. While the past couple of days have seen slight declines in major equity indices, values remain within high territory which is an indication risk appetite remains steady. The correlation of the USD/INR to the results on global equity markets is valid because the forex pair is an interesting barometer of sentiment. The Indian Rupee has been able to establish a solid amount of bearish behavior and is maintaining its value near important support levels against the USD.

However, while the USD/INR is certainly trading near important support it has proven to sometimes produce quick surges in value which are often unexpected.  The relatively calm trading waters of the forex pair therefore should make speculators feel uneasy. However, this emotion is a good defense mechanism while trading forex because feeling uneasy will make a speculator carefully consider their trading positions before entering orders blindly.

As of this morning, the USD/INR is once again is trading near the seemingly always inflection point of 73.3000.  What is interesting about this price level is its ability to act as a median and seemingly launch reversals higher and lower within the forex pair. The past four days of trading have produced an average range between the 73.1300 and 73.4300 junctures.

The USD/INR remains a good forex pair for speculators to trade both sides while looking to take advantage of its tight range which has seen solid and has had comfortable reversals take place in a rather tame trading range. Important to acknowledge, the USD/INR has produced spikes which are fast and dangerous, so speculators need to make sure they are not using stop losses that are too close to market values which will knock them out of a trade before it can produce the goals wanted.

Selling the USD/INR remains a valid option when retracements higher occur within the 73.3300 to 73.4000 levels and looking for downside action. And buying the USD/INR when the forex pair is within the 73.2700 to 73.2000 junctures and looking for upside momentum is also an opportunity. In order to take advantage of the trading range a speculator must be quick, use limit orders and get out of trades and cash in profits instead of pursuing trends which are unlikely to emerge.

Indian Rupee Short Term Outlook:

Current Resistance: 73.4200

Current Support: 73.1400

High Target: 73.5100

Low Target: 73.0300

USDINR

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.

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