USD/INR Forecast: October 2021

Robert Petrucci

The USD/INR has produced two very intriguing months of trading in August and September, and traders need to seriously contemplate what will happen next.

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The USD/INR will begin October trading near important mid-term highs and has enjoyed a stellar bullish trend in the month of September. On the 3rd of September the USD/INR was trading near a low of 72.9000, which challenged depths seen in the second week of June. Traders who were expecting fresh lows to result from the early September marks were treated harshly, when the USD/INR suddenly began to reverse higher. As of this writing, the USD/INR is near the 74.2000 vicinity and is testing a juncture seen in the third week of August.

A look at a one-year chart of the USD/INR gives a clear indication of the rampant whipsaw trends which have been demonstrated in the pair. Traders who like the USD/INR as a speculative endeavor can certainly find a vast array of volatility which will challenge them day and night. As October gets ready to start, the USD/INR has exhibited a bullish trend for a solid month. However, on the 19th of July, the USD/INR was trading near the 75.0000 mark, which creates two things to consider in the coming weeks.

After reaching highs in July, the USD/INR saw selling erode the Forex pair and a relative range of 74.1000 to 74.5000 was attained in the month of August. Then, on the 27th of August, after delivering some bearish signals in the days prior, the USD/INR dropped from a high of about 74.1500 to a low of approximately 72.9000 on the 30th of August. Traders who believed the USD/INR had been oversold at this stage may have been able to pursue what developed into a serious bullish trend the entire month of September.

Current resistance levels for the USD/INR are near the 74.2500 to 74.3000 ratios. If the USD/INR is able to penetrate these marks, the pair will then be trading once again within the midst of its August range. While the July high of nearly 75.0000 may seem like a distance away, the notion the 74.4000 mark is attainable may prove to be possible. Technically, the USD/INR has a solid history of trending and speculators who are able to use solid take profit and stop loss orders may be attracted to pursue the volatility the Forex pair produces.

Indian Rupee Outlook for October

Speculative price range for USD/INR is 73.3600 to 75.1100.

If current resistance levels which are nearby are penetrated higher, the USD/INR could easily challenge higher ratios which were seen in the month of August. Current market conditions globally in Forex are correlating well with the USD/INR as the USD shows strength due to the pronouncements from the US Federal Reserve. The month of October could replicate August trading and challenge highs near the 74.5000 ratios without too much effort if a solid amount of momentum is generated. And if this higher juncture is surpassed, it is within the realm of reason to suspect the USD/INR could move slightly higher and battle the higher realm of prices seen in July.

Skeptical traders who believe the USD/INR has been overbought may also have plenty of ammunition as evidence. However, global markets currently are showing a bit of fragility and if the USD remains durable in the mid-term because of the US central bank, this might make strong selloffs harder to attain. Speculators looking to sell the USD/INR are encouraged to use adequate stop losses and place take profit orders that are not overly ambitious. If the 74.1000 mark proves vulnerable and the 74.0000 juncture is approached, traders should wait to see if prices can be sustained below this level. If the USD/INR does produce bearish momentum it could move towards the 73.8000 to 73.7000 marks on better risk appetite in Forex.

USD/INR October 2021 Monthly

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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