- It’s clear to me that we don’t really have anywhere to be at the moment.
- This does make a certain amount of sense, considering that we are in the midst of summer and liquidity could be a bit of an issue.
- Furthermore, this is a currency pair that is heavily influenced by the Bank of India, which has its hands in exchange rates.
I think at this point in time, it’s probably worth noting that the pair is typically range bound, so it does make a lot of sense that we would continue to see a lot of sideways and lackluster action. That being said, the market has been pressuring the 83.70 level, an area that has acted as a bit of a ceiling. If we can break above there, then the market is likely to go looking toward the 84 level. Short-term pullbacks of course have plenty of support underneath, especially near the 83.40 level, which has been supported over the last couple of weeks, and also features the 50-Day EMA.
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Underneath there, we have the 200-Day EMA near the 83.15 level, which of course an area that a lot of people will look at through the prism of technical analysis of the as the 200-Day EMA often is what people will use to determine the overall trend. In general, this is a market that I think continues to see a lot of noise, and therefore a lot of opportunities will present themselves for those who are patient enough to wait for pullbacks. I believe we are getting one of those pullbacks right now.
Global Security
There are a lot of concerns right now around the world as to what’s going on with global politics, and that does tend to have a strengthening effect on the United States dollar, as is considered to be a safety currency. Furthermore, the Indian rupee is considered to be an emerging market, so I do think that this pullback that we are in the midst of will eventually be bought into, and the US dollar against the Indian rupee pair will bounce.
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