The USD/INR has produced difficult trading the past week. Fast and sometimes volatile price fluctuations have been experienced and this may have proved painful if speculators were caught on the wrong side. The 73.000 level for the USD/INR did prove to be an inflection point yesterday when it was broken higher and as sustained values above emerged additional bullish momentum developed.
Trading this morning started with a quick bearish spurt downwards, but since the rapid decline to nearly 73.0000 the USD/INR has resumed an incremental rise. Fast conditions remain evident and speculators looking to trade this forex pair should consider limit orders to take active positions so they are not surprised by price fills which could prove shocking.
Resistance near the 73.4100 juncture may prove noteworthy. However, under the present conditions, it may also be brushed aside easily if it is used as a stop loss. Speculators who seek downward reversals should be careful today use stop-loss positions which are slightly above technical resistance to try and avoid choppy trading which could prove frustrating.
The USD/INR has enjoyed a solid bearish trend since the 20th of August and its current price ratios remain well within the downward technical cycle which has been demonstrated. Support near the 73.1800 ratio could be considered a target by sellers and if that level is broken it would not be surprising to see another test of the 73.0000 mark transpire. Within the lightning quick conditions which the USD/INR are moving, speculators will need to be ready to take advantage of sudden price spikes by having to take profit limit orders working. It may prove to be impossible for short term traders to get the prices they are eyeing on their forex platforms if they are too slow to hit a tab when a target comes into sight.
Volatility has certainly been experienced in the USD/INR the past week of trading. The forex pair however has proven to be capable of producing a solid trend and speculators may believe the bearish cycle will establish itself again sooner rather than later. Selling the USD/INR within a range of 73.3000 to 73.4000 and looking for downward momentum is a speculative trade, but one which could prove worthwhile if solid risk management is used.
Indian Rupee Short Term Outlook:
Current Resistance: 73.4100
Current Support: 73.1800
High Target: 73.7500
Low Target: 73.0000
