USD/INR: Choppy Trading Conditions Mount as Support Tested

The USD/INR has seen a test of its range the past few trading days as choppy conditions rise amidst light holiday volumes.

As of this writing, the USD/INR is near important short-term support and traders need to remain alert. The past couple of days have produced a rather choppy range as resistance levels have been tested above, proven adequate and then caused reversals lower. Holiday trading volumes will be weak and speculators need to fully understand that spikes can suddenly emerge near term.

However, the price vicinity of the USD/INR is compelling from a technical perspective, because it appears to be lingering on a support level which could prove vulnerable. Because of the lack of commercial trading taking place via financial institutions in the coming days, the value of the USD/INR may prove difficult to reignite its bearish trend, but it will be wise to monitor the Forex pair.

Since the second week of November, the USD/INR has accomplished a rather steady bearish trend, but it has seen momentary glitches with strong reversals upwards occur. With holiday trading now an intricate part of the landscape the next couple of weeks, traders need to remain suspicious about sudden gyrations in Forex, but interestingly if strong trends do occur and higher resistance levels are suddenly targeted, having a limit order ready to sell the USD/INR remains a rather tempting opportunity.

Speculators should be ready to take advantage of quick-hitting trades and pursue small trends in the short term. The USD/INR is testing support which is important, and if the 73.470 level is broken lower and trading sustains beneath this juncture, it could signal that the bearish trend remains strong even in the midst of holiday trading. It is possible the USD/INR could resume its downward trend sooner rather than later. However, traders should not be greedy, and if they are fortunate enough to have winning positions, they should cash in their profits so they do not suffer from sudden reversals which can happen when Forex volumes are low.

Global sentiment appears to be steady for the time being, but fragile perspectives do shadow the markets because of renewed fears regarding coronavirus. However, the past eight months have proven that optimism frequently is the victor in the fight for investor outlook. The USD/INR has maintained a rather steady bearish trend. So, if resistance levels are approached short term, there may be technical reasons to sell the USD/INR and look for some downward momentum.

Indian Rupee Short-Term Outlook:

  • Current Resistance: 73.630
  • Current Support: 73.470
  • High Target: 73.850
  • Low Target: 73.330

USD/INR chart

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.