While the tight trading range of the USD/INR persists, it also is presenting traders who know how to place limit orders an opportunity to take advantage of its current values. The support level of 74.6000 was beaten downwards yesterday and the mark of 74.5000 has been tested steadily.
Because the Indian Rupee remains in a fairly consolidate value band, reversals higher have also occurred. However, short term resistance levels appear to be incrementally lowering and have provided a dynamic ability to sell the USD/INR.
Current resistance for the USD/INR looks capable near the 74.7400 level and a higher juncture at 74.8000 looks solid as a stop loss position. Speculators have to be nimble with the USD/INR because of its rather tight range, but they can take advantage of the fairly consolidated support and resistance ratios by using limit orders to enter and exit their trading positions.
The dilemma for many traders without experience is deciding when it is the right time to cash in a profit. This is a definite area new and even experienced traders need to focus on because while it feels and looks great to have winning positions in your trading portfolio, they can actually only be counted when you have completed your trade.
Pay attention folks, you need to take profits off the table and accumulate them. Letting positions trade because you want to become king of the world is always a nice fantasy to wish upon, but if you do not cash in a winning position you may witness a reversal that wipes out your profits which you were hoping would buy you a castle. Do not let winners turn into losers. This cannot be repeated enough. So how do you do that?
You need to have a price target in mind which tells you when you want to get out of a trademarked down and positioned right from the beginning of your trade. Changing the goals of your forex position while it is trading often leads to poor results.
While trading the USD/INR short term it is best to focus on targeted quick results. Selling the USD/INR within the 74.6800 to 74.7300 range and looking for profits around the 7.6000 juncture could prove a winning trade. Pay attention to the market, the USD/INR is intriguing because of its solid resistance above, please use stop-loss positions too. Risk reward scenarios favor selling the USD/INR under the present market conditions.
Indian Rupee Short Term Outlook:
Current Resistance: 74.7400
Current Support: 74.5000
High Target: 74.8000
Low Target: 74.4000
