The USD/INR is shadowing important support levels which have proven rather strong in early September and the second week of October. The questions speculators will contemplate is if the third time is the charm and if the USD/INR will break through the 72.910 to 72.770 junctures in earnest and sustain values below.
The USD/INR is enjoying a rather incremental bearish trend, and it has not produced a great deal of volatility in the past week, nor displayed much in the way of sudden spikes higher. However, rest assured that the USD/INR will exhibit fireworks once again and may perform a rather drama-filled trading spectrum sooner rather than later.
Technical traders should take the time to look at a one-year chart with candlesticks to gain a long-term perspective regarding the USD/INR. In March of 2020, the Forex pair was trading at lower values, and if the USD/INR’s current price range falters and support proves vulnerable, targets below will look attractive to bearish speculators.
The trend of the USD/INR is not drawn in cement and direction can change abruptly, but if the vital support level that the Forex pair is now trading unravels, fast conditions should be expected. Global risk appetite remains energetic and there is reason to suspect that the USD will continue to remain with a weakened stance.
Recent resistance levels have proven rather adequate for the USD/INR and traders who want to purse downside action with selling positions should consider using stop losses slightly near the higher junctures. The USD/INR needs to prove it can sustain its value below the 73.000 level and, if this is accomplished, traders may believe that targeting lower support is practical. However, traders are reminded not to get too greedy; cashing out winning positions which are achieved short term is much healthier than watching them vanish into thin air when Forex reverses momentarily.
The bearish trend of the USD/INR remains attractive and the potential of support proving vulnerable the third time around when looking at long-term charts is alluring. Traders who choose to pursue selling positions of the USD/INR have a logical argument from technical charts and current behavior in the broad marketplace.
Indian Rupee Short-Term Outlook:
- Current Resistance: 73.050
- Current Support: 72.910
- High Target: 73.170
- Low Target: 72.770
