The USD/INR technically has proven that it has the capability to move higher and break through the 73.0000 juncture and maintain values above. The move upwards, however, has not come without a fight. After touching highs near the 73.1200 level on Thursday, a reversal lower was produced which took the USD/INR into important bearish territory and around 72.8800 early on Friday. However, since hitting these lower depths, the USD/INR has traversed higher.
As of this writing, the USD/INR is trading near the 73.1800 juncture, and the 73.2500 to 73.3000 values above should be watched intently. The USD/INR is capable of producing dynamic volatility, and it is within reason that the 73.2900 to 73.3300 levels could be tested in the near term in fast conditions.
Yes, the USD/INR has produced a solid landscape for bearish momentum since the middle of April, and the Forex pair’s value is still within the bottom tier of its long-term range. It is likely that short-term sentiment is being hampered by shadows coming from the U.S Federal Reserve which will make their FOMC Policy Statement on Wednesday. Unease within the global Forex market is certain to grow today and tomorrow ahead of interest rate proclamations from the States.
Technically, the USD/INR remains within an attractive speculative range, one which might prove tempting for speculators who can manage their risk appropriately. There should be no doubt that the USD/INR may produce heightened volatility the next couple of days and choppy conditions will be rampant. Traders need to use limit orders and consider their chosen strategies carefully.
Speculators may favor selling the USD/INR if the Forex pair tests higher resistance realms near the 73.2500 to 73.3000 levels. However, traders cannot be blamed for being buyers at the current levels near 73.2000 and targeting these higher values as take-profit targets for short-term trading endeavors too.
The next three days of trading within the USD/INR are sure to produce fireworks as short-term sentiment is put to the test and if resistance levels are approached. Speculators may prove wise to be buyers on slight movements lower, while looking for reversals higher until the US Federal Reserve has made its interest rate position clear.
Indian Rupee Short-Term Outlook:
Current Resistance: 73.2500
Current Support: 73.0900
High Target: 73.3300
Low Target: 72.9900
