The USD/INR continues to produce opportunities for speculators who have the desire to participate within fast trading conditions. A bounce higher back to known higher realms has occurred for the USD/INR currency pair, as it reacts to nervous behavioral sentiment being generated in global markets. The shadow of tomorrow’s U.S Federal Reserve interest rate hike and outlook pronouncements are certainly having an effect on price action.
Speculative bearish traders may perceive the USD/INR as having been overbought again, but the long term bullish trend of the Forex pair serves as a warning sign. Yes, momentum shifts downwards have occurred and last week’s lower depths certainly got the attention of all traders as the USD/INR touched lows of nearly 79.0000 on the 13th of September. Selling the USD/INR for quick hitting reversals lower remains viable, but there are dangers to be defeated.
Last Week’s Lows may feel like a Mirage now that Momentum has turned Upwards
The lows created last week in the USD/INR did reflect the broad Forex market among many of the emerging currency pairs, and the move higher the past few trading days has also been correlated. While the important 80.0000 has not been touched the past couple of days, a high of around 79.8125 was seen recently and the current price although lower, is still within sight of this rather nervous high.
Support levels should be watched as clues today and a potential signal for tomorrow. Traders may want to remain extremely cautious as the U.S Federal Reserve stands in the shadows. However, if current price action can sustain values above the 79.6000 to 79.5800 ratios today, this may show that a potential ignition switch remains that could trigger higher values tomorrow, if the U.S central bank makes it clear more interest rate hikes will come.
Technical Factors are Important, but Fundamentals are Stilling Stirring USD/INR Volatility
- Traders who want to wager on upside in the USD/INR should watch current support levels, and if resistance near 79.7000 seriously begins to be flirted with it could mean higher moves.
- Volatility will be strong for the USD/INR in the coming day as financial houses try to position before the U.S Federal Reserve issues its interest rate outlook.
Price action has been dynamic within the USD/INR recently and that is not about to change. Speculators are urged to use solid risk management. Cautious traders may want to sit on the sidelines until the U.S Fed discusses its interest rate ‘path’ tomorrow. The long term bullish trend of the USD/INR has been rather consistent and looking for higher values to emerge in the near term may be the logical bet.
USD/INR Short Term Outlook:
Current Resistance: 79.7390
Current Support: 79.6400
High Target: 79.8394
Low Target: 78.5710
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