The USD/INR has produced a solid mid-term bearish trend, but the past week of trading has seen consolidated movement and a breakout higher. However, in early trading this morning the USD/INR has again mirrored risk sentiment in the global markets and has produced mixed results as it hovers near the 73.8000 mark.
What should trouble speculators who remain bearish regarding the USD/INR is the incremental rise in support which has developed the past week of trading. As of this morning low support targets are levels which were resistance levels only one week ago. This clearly shows that global risk sentiment has been bruised and investors have turned cautious.
However, speculators will also look at the ability of the USD/INR in the past week to maintain the 74.0000 level adequately as resistance. While there are no sure things when trading forex and speculators need to be ready for the unexpected, the resistance level may prove a rather interesting juncture to position selling limit orders. If a trader perceives global risk sentiment will arise again and the bearish trend which was demonstrated in the USD/INR will prove capable near term, it seems a logical choice to pursue selling.
Unfortunately just because a trader believes something will happen does not mean that their goals are always met and if a speculator remains stubborn as the forex market goes against them it can hurt them badly within their trading account. The sudden bullish momentum the USD/INR has possessed is a sign that investors are cautious and that choppy trading may remain dominant short term until positive momentum can be displayed on equity indices for a few days in a row. Coronavirus fears are starting to spark again in some nations as a second surge seems to be making waves among citizens.
However, the USD/INR has enjoyed a rather meaningful bearish trend mid-term. Although bullish sentiment has been generated the past week, this doesn’t mean the bearish trend has been vanquished. Traders looking to sell the USD/INR need to be patient, use conservative leverage and solid risk management. If a trader sells using limit orders within the range of 73.8000 to 73.8500 and looks for downward price action they may be rewarded.
Indian Rupee Short Term Outlook:
Current Resistance: 73.9500
Current Support: 73.7000
High Target: 74.0100
Low Target: 73.5100
