Volatile price action late last week and early this week in the USD/INR has caused hectic trading days for speculators. However this morning’s price action within the forex pair has not produced sudden spikes, and while there remains a chance for swift fluctuations, traders will likely be hoping for the calm trading waters to remain.
A slight reversal higher has been produced this morning and the USD/INR is testing key short term resistance levels. After seeing another bearish round of momentum early yesterday and falling to nearly 72.6500 the USD/INR has seen an incremental bullish trend emerge. However, the higher price range must be looked at with suspicious eyes considering the past week and a half of trading.
Resistance near the 73.2000 level could prove important, but more interesting may be the support level of 72.8500 which could prove to be a trigger if it is broken downwards. It needs to be noted that as of late on the 20th of August the USD/INR was trading above the 75.0000 value juncture and has since seen a bearish wave emerge which hit its low water mark yesterday, meaning traders have been treated – or tortured – depending on their long or short positions to fast and eventful price swings.
Traders should monitor the 73.000 juncture carefully with the USD/INR. If price action can consolidate near this value it may indicate the forex pair has found a comfortable equilibrium. Suggesting that a new range for the USD/INR could be emerging which will allow speculators to test short term perspectives without the fear of being crushed by volatile conditions which have been demonstrated the past few trading sessions.
While the USD/INR trades near the 73.0000 juncture speculators may have an opportunity to look for short term trades which takes advantage of incremental reversals. What traders also need to understand is that there has been plenty of momentum trading taking place within the USD/INR and they might want to use limit orders that pursue active momentum instead of looking for sudden reversals. In other words, if the USD/INR falls below the 72.8500 level a speculator may actually want to sell the USD/INR. And if the USD/INR moves higher than the 73.2000 level they might want to be buyers.
Indian Rupee Short Term Outlook:
Current Resistance: 73.2000
Current Support: 72.8500
High Target: 73.3000
Low Target: 72.7000