The USD/INR has continued to traverse within the higher realms of its short-term range as risk-averse trading seems to have created more durable support.
As of this writing, the USD/INR is near the 73.8000 mark and has crawled slightly higher in the past day of trading. A high of nearly 73.8400 was produced yesterday, which was followed by a reversal which eventually hit approximately 73.5400 before traversing higher once again. Choppy trading conditions remain the flavor of the day, as risk appetite appears fragile in the global markets while financial institutions apparently brace for the potential of behavioral sentiment storms.
Support was certainly challenged yesterday, but the low of 73.5400 proved durable and the USD/INR didn’t challenge lower values which were seen on the 17th of September of nearly 73.4000. It should be pointed out also that on the 16th, a low of nearly 73.3300 was demonstrated in the USD/INR. The higher support levels attained the past few days demonstrates an incremental crawl upwards and this can be viewed as a bullish signal momentarily.
If the current support levels of 73.7800 to 73.7300 hold, traders with bullish expectations may use this to stir their speculative imaginations and decide to pursue additional movement higher in the USD/INR. Having hit a high of around 73.8400 yesterday, this could certainly be used as a target for take profit orders within the USD/INR if the resistance level proves to be a magnet.
After hitting lows in late August and early September, the USD/INR has certainly demonstrated the ability to reverse higher. On the 2nd of September, the USD/INR was trading near the 72.9000 mark, after trading near a high of 74.2000 on the 27th of August before moving sharply lower. The USD/INR has the ability to produce quick volatility and rather intriguing short-term trends. The sudden dose of nervous sentiment into the global markets certainly makes the USD/INR attractive for speculators near term.
However being able to take advantage of direction is not an easy task for traders within the USD/INR sometimes. Speculators who are inclined to be buyers in the short term because of the technical climb higher may be making the correct wager, but they should not get overly ambitious and make use of quick hitting take profit calculations to avoid sudden reversals downward which certainly can be exhibited too.
Indian Rupee Short-Term Outlook
Current Resistance: 73.8700
Current Support: 73.7300
High Target: 74.0900
Low Target: 73.5300