The past week of trading in the USD/INR has seen a clear bullish trend develop, and traders who have been pursuing lower values may have to reevaluate their thinking short term. Resistance levels have proven vulnerable and support junctures have risen since the 4th of January. Starting the New Year, the USD/INR was trading near lows of nearly 72.830, but the Forex pair has developed a definite trend upwards, and its rather steady bearish track which has been accomplished mid-term needs to be reconsidered.
The USD/INR’s recent trading higher is now challenging late December values, and resistance above near the 73.600 level should be monitored. As late as the 21st of December, the USD/INR was trading near the 74.000 juncture, which was also touched in late November. It should be remembered that the USD/INR was trading near 74.800 in early November of 2020. Traders need to understand that the change in value within the Forex pair is within a normal range and the volatility they may be feeling is likely due to the amount of leverage they are using when trading the USD/INR.
Short-term traders should use their risk management astutely and make sure they are monitoring the USD/INR with a cautious approach. Having carefully selected stop loss ratios is important, but equally critical is the need to have take-profit positions active to take advantage of movements within the USD/INR before they suffer sudden reversals and winning trades vanish.
Speculators who believe bullish behavior will continue to dominate the USD/INR short term and want to follow the recent trend which has developed cannot be faulted. These traders should use support levels as stop losses. The junctures of 73.420 to 73.360 appear to be rather interesting levels to consider buying the USD/INR for short-term speculative ventures.
Yes, mid-term, the USD/INR remains within its bearish range, but trading timeframes are the most important parameter that short-term speculators will need to consider. If a trader wants to sell the USD/INR, they might want to practice patience and wait for another slight bullish movement to first prove its muster and then look for reversals lower. Selling near the 73.520 to 73.610 levels could prove worthwhile, but traders definitely should have stop loss ratios also planned and working.
Indian Rupee Short-Term Outlook:
- Current Resistance: 73.540
- Current Support: 73.390
- High Target: 73.610
- Low Target: 73.260
