The USD/INR remains within the lower realm of its value range, but the Forex pair has met rather strong support and consolidated.
The USD/INR has been able to sustain its lower value range the past couple of days, but support below has also proven rather strong and has produced a couple of reversals higher. In early morning trading, the USD/INR is hovering again near the 73.000 mark, which remains an important inflection area for the Forex pair as speculators consider direction. The ability of the USD/INR to traverse its current price vicinity within a rather consolidated manner should catch the attention of traders.
Technically, the USD/INR has seen both its support and resistance levels grow tighter and experienced speculators of the Forex pair likely understand this narrow range will not last. This leaves traders one question: why has the USD/INR seen its value consolidate and when will a breakout occur?
The USD/INR has produced a rather substantial bearish trend and traders need to understand that Forex seldom produces one-way avenues. The movement of the USD/INR has also produced rather violent reversals higher during its current bearish trend, which should make speculators cautious. The ability of the USD/INR to reignite its downward price action after reversals higher demonstrates the dominant force of bearish sentiment.
The movement that the USD/INR has produced on a steady basis is likely not going to disappear, and it is probable that short-term consolidation will prove vulnerable sooner rather than later. Speculators who wish to wager on reversals higher off current support levels are advised to seek quick trades and use take profits. Resistance still may be tested higher, but it appears for the moment that movement downward has the capacity to be stronger when it is triggered in abundance.
The bearish trend of the USD/INR remains the power and traders should continue to pursue the momentum downwards. Support has proven strong near the 72.930 level and another layer is nearby around the 72.860 juncture. Until these support levels are broken and value is sustained below, the USD/INR may continue to produce a rather choppy consolidated path. Traders who want to wager on the bearish trend should be sellers on limited moves higher which activate short positions and have their take profits in place to cash in winnings near current support levels.
Indian Rupee Short-Term Outlook:
- Current Resistance: 73.120
- Current Support: 72.930
- High Target: 73.290
- Low Target: 72.860