USD/INR: Consolidation in Short-Term Higher Range Intrigues

Robert Petrucci

The USD/INR remains within the higher price vicinity it has traversed the past few days and its recent consolidation may be signaling action to come.

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The USD/INR has produced a tighter range the past couple of days and is situated within the higher realms of its short-term range. Having achieved a high of nearly 73.8700 on the 9th of September and then experiencing a sharp reversal lower, the USD/INR has incrementally since then added value after falling to a low of about 73.3600 on the 10th of September.

Currently, the USD/INR is hovering near the 73.6400 level with a natural cycle of minor reversals taking place. Short-term support near the 73.6000 level may prove to be important, but this may be a false flag and actual key support is more likely situated near 73.5800. If those junctures begin to be tested it could mean some bearish pressure may be exhibited. A low of nearly 73.5200 was seen early yesterday.

Technically, the rather consolidated range of the USD/INR correlates rather well to the mood in the broad global markets. Nervous sentiment continues to show evidence of mounting the past couple of weeks, particularly in indices as they fail to make steady advances and in fact have run into headwinds. If these conditions continue to create a cautious approach, this may have an impact on Forex and the USD/INR, which means the pair could see some safe haven buying demonstrated.

Current resistance for the USD/INR is near the 73.6700 mark and, if this falters and the 73.7000 level begins to see a challenge, this could indicate further upside momentum is a potential for the USD/INR. Yesterday’s trading produced a high of nearly 73.7300 and this ratio could become a target for ambitious speculators who have the ability to allow their positions to work. However, if a trader wants to pursue the higher resistance levels within the USD/INR they should be ready to possibly have to hold onto their positions overnight.

The USD/INR, via its mid-term charts, actually remains in bearish territory, but recent trading has certainly produced a slightly higher climb which may be shaking the sentiment of speculators who still want to be sellers. The near term for the USD/INR may prove to be choppy and if consolidated trading remains, and nervous sentiment is seen in global indices, technically the Forex pair may find itself continuing to test higher values.

Indian Rupee Short-Term Outlook

Current Resistance: 73.6800

Current Support: 73.5800

High Target: 73.7900

Low Target: 73.4700

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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