After touching lows near 73.2700 in very early trading yesterday, the USD/INR has seen its range firm after experiencing a slight reversal higher. As of this writing, the Forex pair is trading slightly above the 73.4200 mark, but interestingly, resistance levels above actually appear to be durable and have produced a technically incremental decrease.
Early trading this morning did test the 73.5300 juncture, but this was accomplished with a limited amount of volume when the USD/INR may have been slightly unbalanced momentarily. After seeing this high demonstrated, the Forex pair has begun to traverse lower and did challenge the 73.3800 ratio briefly. Trading within the USD/INR has been volatile the past month-and-a-half as India has come to grips with a large wave of coronavirus again and its implications.
However, the bearish trend within the USD/INR, which has been in effect since the 21st of April, remains easy to discern. The rather tranquil trading range of the USD/INR the past couple of days may present an opportunity for traders who feel bearish momentum has the greatest appeal. When it comes to risk/reward scenarios, speculators may be inclined to use slight reversals higher as a means to activate their selling positions.
The junctures of 73.4800 to 73.5200 may prove attractive for sellers of the USD/INR to use as targeted ratios to initiate limit orders to short the Forex pair. Traders should not be too greedy in the short term and accept the rather limited price range of the USD/INR may remain intact. The use of take-profit orders near existing support levels could prove to be worthwhile for traders who want quick results.
Speculators who believe that current resistance levels will witness a cycle of reversals up and down may want to actually buy the USD/INR near support junctures around the 73.3800 to 73.3300 marks below to wager on short-term, upside momentum. After experiencing rather fast market conditions and a steady bearish trend the past few weeks, the rather firm range of the USD/INR may continue to be exhibited and make it a tempting price band to take advantage of rather quick cyclical fluctuations which may persist momentarily.
Indian Rupee Short-Term Outlook:
Current Resistance: 73.4790
Current Support: 73.3300
High Target: 73.5800
Low Target: 73.2400
