The USD/INR has delivered strong bumps in the past week of trading, and there is plenty of reason to suspect the rather challenging ride ahead will be equally volatile. Traders who like a wagering environment in which they can test their perceptions may find the USD/INR currency pair fits their desires in the coming days. As of this writing the USD/INR is near the 79.5600 ratio with quick action being demonstrated.
After Testing Important Short Term Lows on Friday a Sudden Bullish Reversal Higher for USD/INR
On Friday of last week the USD/INR hit the 78.9300 vicinity, while retesting depths last seen on the 3rd of August. On the 2nd of August the USD/INR sunk to nearly the 78.3800 level. The last time the USD/INR had seen this ratio was the last week of June, this before the currency pair began to shoot much higher eventually touching the 80.2000 mark in the middle of July, before erosion lower.
Technical Highs of mid-July are Actually Still within Sight for the USD/INR
Technically the USD/INR may be perceived as having reached highs in mid-July and having sold off incrementally since then. However, traders who follow fundamentals appreciate the behavioral sentiment being generated by U.S Federal Reserve interest rate hikes and outlooks. The slump to short term lows on Friday suddenly saw a reversal, when it became apparent via U.S economic data that wage inflation remains a credible danger in the States and the U.S central bank is likely to be confronted with this issue.
- If the 79.5100 level continues to prove durable as support for the USD/INR in the short term, this could spur on speculative buying positions.
- This entire week is likely to see rather choppy price action as financial houses interpret their analysis regarding the U.S Feds actions in the months to come.
- A hawkish perspective of the U.S Fed could lead to more buying of the USD/INR.
While important all-time highs certainly met with rather strong selling and hit lower depths in early August, after last Friday and this morning’s price action the USD/INR is still within eyesight of July’s strong bullish activity. Speculators who feel the USD/INR could test higher values should keep realistic targets and not aim for the stars.
However looking for quick hitting upward movement after support levels prove durable could be a worthwhile wager on the USD/INR. It is not out of reason to suspect the USD/INR could challenge the 79.8000 ratio sooner rather than later. Again, traders are urged to cash out winning positions if they develop and not let them vanish into thin air, this while using stop loss orders as risk management too.
USD/INR Short Term Outlook:
Current Resistance: 79.6190
Current Support: 79.5089
High Target: 79.7980
Low Target: 79.3000
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