The USD/INR has been able to sustain a solid value but has shown the ability to trend towards important support. While it should not be forgotten the Indian Rupee is not exactly a free-floating currency and is monitored closely by its government, the ability for speculative positions exist.
The 75.200 to 75.500 range should be viewed as a testing zone for the USD/INR. The last week of trading for the Indian Rupee has demonstrated a solid amount of resistance around the 75.500 level. This does not mean you should put a stop loss at the exact level of 75.500, but if you were to sell the USD/INR and put a stop loss around 75.800 it might prove a level that will not get touched too easily, knocking you out of speculative trade.
As of this morning, the Indian Rupee is indeed showing some additional weakness. The USD/INR is trading near the higher part of its range and slightly below a resistance level of 75.400 and 75.500. This is an intriguing resistance level because it has essentially held its ground the past week. The question is if it will continue to do it again?
If the USD/INR support levels currently being displayed do hold it offers an enticing opportunity to sell the USD/INR with a speculative belief the Indian Rupee will gain in value against the US Dollar. Support for the USD/INR appears to be around 75.200 as of this morning, but if you sell the USD/INR around 75.350 to 75.450 and try to profit with the hope the Indian Rupee will test this support level you would not be able to be faulted in my opinion.
The support level of 75.200 has not held consistently the past week. A look at the past week of trading shows the USD/INR has broken below the 75.200 level recently and traders who believe there is a trend in place which is allowing the US Dollar to lose value against the Indian Rupee may be proven correct again. The USD/INR has shown a reason to speculate and suspect a 74.500 value may be a possibility in the near future. Speculative positions carry risk, but with the appearance of a rather strong resistance level of 75.800 level up above, a sell (short position) with the USD/INR may prove worthwhile.
Indian Rupee Short Term Outlook:
Current Resistance: 75.600
Current Support: 75.200
High Target: 75.800
Low Target: 74.500
