USD/INR: Short-Term Resistance Under Pressure After Reversal

Robert Petrucci

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The USD/INR continues to deliver an opportunity for speculators to wager on a rather polite range on a daily basis. The Forex pair has been trading within a solid bearish capacity since the middle of April, but after achieving lower depths at the end of May, USD/INR has traversed higher. As of this writing, the USD/INR is near the 73.0000 ratio, and this may prove to be a key inflection point for short-term speculators who are monitoring behavioral sentiment.

If the 73.0000 juncture is punctured higher it is within reason to believe the USD/INR could test early June highs and perhaps aim for the 73.1000 mark. Traders who are cautious might want to see the USD/INR actually break the 73.0000 and touch the 73.0400 level first before launching a buying position in the hope of stepping aboard a stronger trend higher.

However, from a risk/reward standpoint, speculators may want to consider the notion that the USD/INR has successfully been able to demonstrate rather solid downside momentum the past month. Traders may want to look at the past week-and-a-half within the USD/INR as a natural reversal higher, particular after important lows were hit. If the USD/INR is able to maintain its value near the 73.0000 level and not move too much higher above this ratio, speculators may be right to believe another bearish cycle will emerge.

From a short-term, risk/reward perspective, while the upside has produced a move higher, the question needs to be asked regarding its potential to keep up its pace. Speculators who consider the USD/INR still within a strong bearish grasp may want to consider selling the USD/INR on slight moves higher, based on the assumption that there is more territory to achieve lower compared to a drive upwards.

While the USD/INR trades near the 73.0000 juncture, it may provide traders with an interesting speculative wager. Stop-losses can be used near current resistance levels which are nearby as protection. Traders should be not be over-exuberant and make sure they keep their trading goals limited to short-term scenarios, particularly if they are using a lot of leverage.

Indian Rupee Short-Term Outlook:

Current Resistance: 73.0400

Current Support: 72.9400

High Target: 73.1100

Low Target: 72.8600

USD/INR

Robert Petrucci
Robert Petrucci has worked in the Forex, commodity, and financial profession since 1993. Important aspects of his work involve risk analysis and advisory services. As an advisor in a Family Office he maintains a conservative approach for wealth management and investments. Robert also works in private finance with investors and companies delivering financial and management services.

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