The USD/INR continues to offer speculators a chance to challenge its range, and an opportunity to look for short-term reversals as support and resistance levels proves adequate. The Indian rupee has traversed slightly lower the past five days of trading, and yesterday did challenge important support. As of this writing, the USD/INR continues to remain within a slightly bearish mode.
The past month of trading within the USD/INR has seen its share of violent spikes, but it also continues to demonstrate the ability to maintain a price range to which speculators have become accustomed. The question traders need to ask themselves is if the USD/INR will continue to bounce along its current value band or if a breakout will occur.
If the USD/INR continues to display a steady price range, it will certainly offer speculators an opportunity to take advantage of small trends while anticipating reversals. Support near the 73.500 level has proven strong on numerous occasions. Yes, the Forex pair has traversed lower and the USD/INR did challenge the 73.450 mark yesterday, but the support level proved strong and produced a rather capable reversal higher. Until support levels of 73.450 to 73.380 are penetrated lower and values are sustained below, speculators cannot be blamed for continuing to seek short-term reversals.
Resistance in the USD/INR has interestingly shown an ability to incrementally decrease, but just last week trading produced a sudden spike upwards which should remain in the mindset of speculators. Resistance near the 73.700 juncture appears adequate short term, but it could still prove vulnerable, and a test of the 73.830 to 73.940 levels is not out of the question.
The rather steady bearish trend of the USD/INR does remain rather firm, but there have been tests upwards in which bullish momentum has demonstrated an ability to hurt speculators who are not attentive. Traders should continue to pursue selling positions of the USD/INR when reversals upward come within striking distance of known resistance levels. Using limit orders with the USD/INR remains an important part of trading the Forex pair to safeguard against sudden spikes. Trader may want to try to sell the USD/INR near 73.630 to 73.660 and look for downside momentum for quick trading opportunities while using take profit and stop loss orders.
Indian Rupee Short-Term Outlook:
- Current Resistance: 73.700
- Current Support: 73.510
- High Target: 73.940
- Low Target: 73.380
