After making short-term highs on the 2nd of June, the USD/INR has seen renewed vigor via bearish sentiment and the Forex pair is now challenging key support.
The USD/INR remains within its bearish trajectory and is traversing important support ratios in early trading today. After seeing a reactionary upwards reversal early in the month, which saw a high of nearly 73.3100 on the 2nd of June, selling has become the dominant feature again. The USD/INR continued to demonstrate ability to test short-term lows yesterday, keeping its bearish momentum from late last week maintained.
After trading around low water depths of nearly 72.3300 in late May, the USD/INR certainly saw buyers step into the Forex market. However, this reversal higher to the ultimate level of 73.3100 has proven to be short-lived, and the USD/INR has exhibited a capability to penetrate beneath the 73.0000 juncture again. Yesterday’s trading briefly tested highs near the 72.9100 ratio, but since then the USD/INR has established a consolidated range within the low price range it occupies now technically.
Speculators are likely asking themselves how much room the USD/INR has to create further downside price action. The question of risk/reward when contemplating where the greatest price action will gravitate towards is an important consideration. Yes, the USD/INR has proven it can maintain its bearish stance and trade lower, but can it continue to produce this momentum?
As of this writing, the USD/INR is trading near the 72.8200 vicinity, and support near the 72.7900 to 72.7700 junctures need to be watched carefully. If price pressure penetrates these ratios, the 72.7400 mark will become the next target, and if this level become vulnerable another test of early June and late May values may be exhibited. Speculative traders who believe that additional USD/INR bearish sentiment will be expressed within the current short-term trend should consider being sellers.
Traders who do decide to short the USD/INR can use nearby resistance levels as stop-loss protection. The USD/INR certainly is capable of reversing higher in a volatile manner with sudden spikes, but traders of the Forex pair may be making a good decision if they decide to continue exploring selling opportunities within the USD/INR. If the price of the USD/INR is sustained near its current price, it may be a solid indicator that another leg down can develop sooner rather than later.
Indian Rupee Short-Term Outlook:
Current Resistance: 72.8800
Current Support: 72.7750
High Target: 72.9900
Low Target: 72.6600