The USD/INR remains within a rather steady price range, but late yesterday the Indian rupee displayed a sudden spike upwards which quickly reversed downwards. These types of sudden jolts within the USD/INR are something speculators caught on the wrong side of the trade, but the spike upwards was met with a clear reversal lower and the Forex pair returned to its known trading range.
As of writing this morning, the USD/INR is near the 73.720 level which is comfortably within the values the Forex pair has maintained the past five days of trading. The past handful of days has mostly produced a range between 73.490 and 73.930. The one-month low for the USD/INR was around 73.370, which happened on the 2nd of December. On the 9th of October, the USD/INR did touch a low water mark of 72.830 approximately.
Since the middle of November, the USD/INR has produced a rather steady bearish trend, but its current price range short term has proven that support levels appear rather strong. Speculators may be inclined to pursue downward momentum with the USD/INR, but they need to take into account the rather strong support levels which have not been able to see an accomplished amount of sustained trading below certain junctures.
Short term, the 73.560 support ratio has proven strong, and when it has been broken lower, traders can see technical bounces occurring around the 73.470 level. Until these support levels are punctured with a sincere amount of trading being sustained below these marks, traders should continue to look for reversals to dominate within the USD/INR.
Selling the USD/INR at its higher levels when resistance is approached remains an attractive opportunity for traders. However, yesterday’s sudden and violent spike upwards show that stop loss orders should always be in place when trading the USD/INR, unless a trader has a profound amount of cash in their trading account. Pursuing downside momentum in the USD/INR near the 73.750 to 73.850 junctures remains a logical wager for this Forex pair if take profits orders placed near support levels are active.
Indian Rupee Short-Term Outlook:
- Current Resistance: 73.860
- Current Support: 73.560
- High Target: 74.080
- Low Target: 73.410
