Short-term traders anticipating a potential stronger bearish move within the USD/INR are paying close attention to support.
The USD/INR continues to test long-term support levels and traders who believe a bearish move is likely to happen should practice patience. Resistance levels above the past five trading days have proven adequate, but have certainly produced reversals as short-term choppy conditions prevail. However, like ocean tides which are relentless, the USD/INR continues to brush up against the shore and threaten erosion.
The USD/INR has been within the grasp of a rather strong bearish trend and traders who are paying attention to technical charts are likely anticipating further downward momentum to be generated. The question is if and when it will occur. The 72.830 has become a battleground which has accomplished sudden brief reversals higher the past week, but traders may continue to target the 72.800 level below as important territory.
Short-term traders need to be careful within the current waters of the USD/INR as it traverses bearish depths. While it is a logical decision to believe that the Forex pair will eventually break support and begin to test lower realms, current trading conditions should include quick-hitting trading perspectives which do not overreach. One technique that traders should be implementing is the use of a take-profit just a bit above current support levels. Until the USD/INR absolutely punctures the 72.830 to 72.800 junctures, more bearish activity remains hard to pinpoint.
However, when current support levels are penetrated, it is likely that the USD/INR may quickly test the 72.720 mark. For the moment, short-term traders should be content to use the rather tight consolidated range of the USD/INR as an opportunity to take advantage of short-term reversals, while selling highs. Yes, a speculator can buy lows and look for upside momentum too, but if the bearish trend of the USD/INR suddenly proves that ‘this is the moment’ it is going to puncture support, it could prove an expensive decision.
Traders looking for upside movement are encouraged to choose resistance levels and buy above them, if they are broken for short-term speculative wagers which may test higher values briefly. The USD/INR continues to signal that its bearish trend is strong, however, and traders may want to focus on this momentum and look for further downside opportunities, which will likely develop.
Indian Rupee Short-Term Outlook:
- Current Resistance: 73.030
- Current Support: 72.830
- High Target: 73.110
- Low Target: 72.720