As of this writing the USD/INR is near the 81.55000 mark, but traders are urged to compare this written price to the actual value as they read. The movement of the USD/INR remains volatile as it trades with the upper tier of range. Having achieved a record high above the 82.0000 mark on the 28th of September, the USD/INR is still within sight of this accomplishment and traders need to acknowledge the long term bullish trend.
This morning’s early trading produced a low of nearly 81.3380 and this is highlighted to demonstrate the rapid price velocity of the USD/INR. Traders should not pursue the USD/INR unless they have very good risk management and the emotional strength to handle the fluctuations which are happening at a rapid pace both higher and lower.
More Volatility will be seen in the USD/INR
Speculators should strongly consider entry price orders with the USD/INR to make sure their price fills meet their expectations. Even if the price fill is met perfectly, another battle is likely to begin quickly as the USD/INR delivers fast changing values. The higher range of its historical values is creating dynamic conditions in the USD/INR and short term retail traders need to understand the dangers. Conservative leverage is urged.
The USD has weakened slightly in the global Forex arena the past couple of days, but all currency pairs including the USD/INR remain vulnerable to behavioral sentiment regarding the future actions of the U.S Federal Reserve. Jobless and earnings data will be published in the U.S this coming Friday. If the numbers remain strong, meaning the U.S job market is fully employed and average wages continue to rise and highlight inflationary pressures, the U.S Fed will likely be forced to raise its interest rate again in November by another 0.75%.
Hawkish U.S Federal Reserve Policy will create Strong Support for the USD/INR
- Although the USD/INR has traded lower the past day, it remains within the upper elements of its long term price range. The 81.0000 level and above may become sustained.
- Volatile conditions will likely remain in the USD/INR and the choppy conditions may attract speculative wagers, but risk management is essential.
The near term is likely to remain choppy for the USD/INR as equilibrium is sought within the upper price range the Forex pair is demonstrating. Traders may want to wager via momentum techniques, based on the notion if nearby support and resistance levels are broken, there might be additional room to traverse towards targets ratios for quick hitting bets until reversals are generated.
USD/INR Short Term Outlook:
Current Resistance: 81.5900
Current Support: 81.4280
High Target: 81.7050
Low Target: 81.3000
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