The USD/INR has demonstrated an ability to sustain its bearish trend and trade near the 73.000 level, which may prove important.
The USD/INR has seen downward momentum remain tantalizingly strong the past few trading days. Resistance levels have incrementally lowered, and although light holiday volume shadows Forex, the direction of the USD/INR is showing an ability to sustain its trend. The Indian rupee, as of this writing, is trading near the key psychological mark of 73.000 and speculators should monitor the value of the USD/INR closely.
Global risk appetite remains optimistic, which has certainly created additional impetus for the USD/INR as equity indices exhibit strong values. The New Year’s holiday being celebrated will certainly make Forex vulnerable to bouts of sudden volatility, meaning traders who choose to participate in the markets near term should be patient and alert. However, the USD/INR price action the past few days and its accomplished bearish track since the middle of November should be given consideration.
If the USD/INR is able to maintain its values below the resistance level of 73.100 consistently short term, it may signal that a test of lower support targets will develop. First the 73.000 support juncture will have to prove vulnerable and trading will have to be achieved below this inflection point for a convincing duration, but if this type of technical trading is displayed, the next targets emerging will be the 72.940 ratio and below.
In early October of 2020, the USD/INR did challenge its current value and it was able to penetrate the 73.000 below, but its trading within these lower prices occurred only briefly. Also, in late August, lower support junctures which challenged the 72.700 were seen. These failed attempts at sustaining lower values for the USD/INR could prove intriguing for speculators who believe the third time may be the charm for the Forex pair.
Traders should consider maintaining their selling sentiment with the USD/INR. Holiday trading volumes could prove volatile short term, but the Forex pair is displaying a solid bearish trend and is beginning to touch marks which it traded in early March of 2020 as coronavirus implications began to affect the financial world. As 2021 begins, the USD/INR may find the ability to sustain its momentum and target lower values.
Indian Rupee Short-Term Outlook:
- Current Resistance: 73.120
- Current Support: 72.940
- High Target: 73.280
- Low Target: 72.850