The USD/INR remains gripped within a bearish trend which continues to demonstrate rather durable resistance levels.
The USD/INR has produced another move downwards as its bearish trend remains tantalizing for speculative opportunities. Short-term results are indicating that the USD/INR may have further room to track lower. The 73.0000 level has been punctured and, as of this writing, the USD/INR is trading near 72.8800 early. Yes, the Forex pair does have a habit of unusual spikes on occasion, and traders need to use effective risk-taking tactics at all times.
However, resistance levels have proven to be rather durable the past handful of days and have not exhibited any wild spikes higher. The lack of violent price action upwards makes placing stop loss ratios slightly above current resistance levels an intriguing possibility when selling the USD/INR. Traders should be careful not to place their stop-loss orders to close to live market prices unless they are trying to execute quick-hitting scalping positions and have even closer take-profit orders working.
Support near the 72.8200 may prove to be a curious trigger for financial houses and speculators short term. This level was broken lower on Friday and produced a typical reaction higher, but the buying momentum was short-lived and the USD/INR continues to trade within the vicinity of Friday’s bearish technical results. If resistance is able to remain secure near the 72.9600 value, traders may continue to believe that the USD/INR is signaling that a test of lower prices could ensue.
Traders can clearly see the USD/INR is trading near one-month lows, but the important chart that should be given consideration is a three-month viewpoint; yes, even for short-term perceptions. A glance at price action in March of this year shows the USD/INR within a lower price range and one that may prove tantalizing for speculators to target. However, traders need to be reminded not to be overly greedy.
Selling the USD/INR at its current lower depths may feel like there is not much room to traverse lower, but the bearish trend in the Forex pair should be contemplated. It is possible that the USD/INR is simply finding equilibrium after the bullish results from the first three weeks of April when fear regarding coronavirus implications helped fuel a definite surge of buying. Traders may want to short the Forex pair while aiming for values which are lower after slight reversals higher occur if they believe in the bearish trajectory of the USD/INR.
Indian Rupee Short-Term Outlook:
Current Resistance: 72.9600
Current Support: 72.8100
High Target: 73.0900
Low Target: 72.6900