The past five days of trading within the USD/INR have been a solid reflection of the forex pair’s rather choppy trading cycle the past month. This choppy range on the surface may look dangerous to inexperienced traders and it should, but this same price band also provides speculators with the ability to be patient an opportunity to take advantage and profit from a range which has proven to be reliable regarding support and resistance junctures.
Yes, spikes do occur within the USD/INR and the forex pair does have a habit to occasionally dashing through technical levels viewed as adequate. However, the USD/INR has also delivered a rather likeable habit of retuning to what can be considered an accepted trading band, meaning that its price range while testing the limits of support and resistance often return to a rather regular heartbeat which speculators can rely upon as a median.
The past week of trading within the USD/INR has seen a consistent test of support which has proven vulnerable, but almost on cue yesterday provided a reversal higher as the forex pair returned to it rather known range. In early trading this morning the USD/INR is testing resistance levels as it trades near the 73.3300 level. Resistance above near the 73.4000 juncture has proven strong the past few trading sessions, although it should be noted a high of 73.6000 was touched on the 6th of October.
Global risk appetite has taken a solid turn and investors seem inclined to continue to pursue an optimistic stance. If equity indices trend higher near term it will certainly help emerging markets and have a likely positive impact on forex. The USD/INR may continue to benefit from positive sentiment and therefore it is logical to assume near term that resistance will prove rather adequate and support levels will be tested more frequently.
With the idea that support levels will continue to prove vulnerable after the occasional reversal higher, traders may want to pursue selling positions of the USD/INR. Within values near the 73.3000 to 73.4000 the Indian Rupee looks to be a candidate to chase potential downside momentum which can emerge quickly if global risk appetite remains steady.
Indian Rupee Short Term Outlook:
Current Resistance: 73.4500
Current Support: 73.2300
High Target: 73.5000
Low Target: 73.1000
