If you are a speculator of the USD/INR you have likely learned the past few days not to remove your eyes from the forex pair for more than a minute. The USD/INR is trading in a very fast manner and its moves have been volatile for traders more accustomed to calmer water from the forex pair. Downside momentum has been relentless and support levels have been tossed to the side with relative ease the past week. Hopefully you have been pursuing the bearish trend of the USD/INR.
In early trading this morning the USD/INR has demonstrated another leg down and it is testing support levels not experienced since late February. Technically the USD/INR has become part of a parade of emerging market currencies that are enjoying bearish selling. The Indian Rupee is challenging values which may prove to be vital inflection points for traders. The 72.2000 to 72.8000 price range is likely viewed as a key testing ground for the USD/INR. If trading is sustained within these levels near term and a reversal upwards does not ensue quickly, speculators will suspect the USD/INR has the ability to gain more downward momentum.
Traders are highly recommended to use limit orders when trading the USD/INR within its present fast conditions. Speculators who are keen to enter the USD/INR rapidly need to understand market conditions could produce a price fill which was not anticipated. It is suggested that traders use patience when pursuing selling positions of the USD/INR so they do not make their ultimate goal of catching another solid downward thrust more difficult to accomplish.
The current price vicinity feels dangerous to write about considering its rapid movement the past few trading sessions. However, if speculators can enter a selling position between a range of 72.8000 and 73.0000 this might prove and adequate range to seek further bearish behavior.
Stop losses will be important to use also as the USD/INR trades within quick conditions. This sudden burst of bearish momentum enjoyed the past few days will certainly run into an upwards reversal, the question is when this will develop. However, buying the USD/INR could prove to be quite dangerous as the bearish trend within the forex pair continues to exhibit strength. Traders who want to be buyers might believe a sudden reversal higher will occur because of over exuberance, but they should take a look at longer term charts and note that the USD/INR seems intent on testing its early February values.
Indian Rupee Short Term Outlook:
Current Resistance: 73.1000
Current Support: 72.5000
High Target: 73.5000
Low Target: 72.0000
