- The US dollar has bounced a bit during the trading session on Wednesday as we continue to see a lot of noisy behavior in the US dollar versus Indian rupee pair.
- This is a market that continues to see a lot of noisy behavior, but I think in general, traders are going to continue to favor the US dollar as it is more of a safety currency, and of course there are a lot of questions asked about Asia.
During the day today, I have done analysis on the Thai Baht, Singapore Dollar, and Japanese Yen. They are all showing me the same thing, which is essentially that the Asian currencies are seeing outflows. I think at this point in time it’s likely that we will continue to see most Asian currencies struggle. The Indian rupee will fall under that purview, and I think we are in a situation where the United States dollar will be preferred against most Asian currencies. Ultimately, this is a situation where the market will continue to see a lot of upward momentum.
Top Regulated Brokers
Technical Analysis
The technical analysis of course is very bullish, as we have bounced from the 50-Day EMA. The 50-Day EMA of course is an indicator that for the most part has held up quite nicely. I think at this point in time we continue to see a lot of value hunters coming into this market and try to take advantage of “cheap greenbacks”, and I do think that eventually we will probably go looking to try to take out the recent highs near the ₹83.75 level. If we can break above there, then the market can truly start to see a lot of momentum chasing, and perhaps a bit of “FOMO.”
Ultimately, this is a market that I think continues to see a lot of noisy behavior, but I do think that it is probably only a matter of time before we break out in continue to go much higher. I have no interest in shorting this market, and I believe that buyers will continue to see value on each and every dip.
Ready to trade our Forex daily analysis and predictions? Here are the best forex trading apps in India to choose from.