The USD/INR has produced swift price action in early trading today, and short-term support levels have been made to look vulnerable technically.
The USD/INR is near the 81.4950 ratio as of this writing, but price action has been fast and readers are urged to compare the market price to this article. After producing a rather intriguing upwards move late last week which didn’t correlate to the broad Forex market, the USD/INR has stepped into line and is now mirroring bearish activity seen against the USD in the short-term.
Key Mid-Term Support Level being challenged in the USD/INR
This morning’s selloff in the USD/INR has the Forex pair once again within the vicinity of important mid-term support values technically. In last September and early October the USD/INR tracked along it current price range. Behavioral sentiment remains nervous in the global markets, but it can be declared the USD has been weaker within the broad Forex market. The USD/INR was trading near the 83.0000 level in the beginning of November, the decline in value since the 3rd of this month has been significant.
After the U.S Fed Report Last Week the USD/INR Traded Oddly
- While many other major currencies gained strength against the USD late last week, this did not exactly happen in the USD/INR. The rather consolidated trading after the U.S Federal Reserve’s Meeting Minutes report in the USD/INR is intriguing.
- If the USD/INR had imbalanced trading positions late last week because of a lack of volume, this would account for the lack of a significant selloff in the USD/INR late last week. The speculative notion that a selloff now may be generated may be a wager that USD/INR traders are thinking about betting on.
The USD/INR trades with sudden violence and risk-taking needs to acknowledge this with conservative amounts of leverage being used. If the USD/INR can maintain its current value range and trade below the 81.5000 juncture in a sustained manner, this may create more bearish sentiment within the currency pair.
The USD/INR has traded lower by a substantial amount earlier this month, on November 11th the currency pair was well below the 81.0000 price level. Speculators need to remain realistic as they wager, but if global behavioral sentiment remains optimistic regarding a change to U.S Federal Reserve policy this could be an important spark. Financial institutions for the moment believe U.S interest rates will become less hawkish regarding rate increases, and the USD/INR may see incremental moves lower which continue to flirt with support levels that may prove vulnerable near term.
USD/INR Short-Term Outlook:
Current Resistance: 81.5310
Current Support: 81.4750
High Target: 81.6490
Low Target: 81.3800