The USD/INR has reversed lower in early trading this morning and is within sight of important support levels which may prove to be an ignition for speculative trading.
As of this writing the USD/INR is near the 82.1700 level with rather swift results being displayed. The value of the USD/INR currency pair has moved lower in early trading from a high of nearly 82.2300. This morning’s lowest depth seen thus far was the 82.0100 vicinity. Yesterday’s high around the 82.4300 mark challenged Friday’s higher values also.
Making the USD/INR more intriguing from a speculative view is the technical consideration that the Forex pair has been producing incrementally lower highs since trading at an apex summit of nearly 82.8200 on the 7th and 10th of October. While a move lower has certainly taken place and important support is within sight next to the 82.0000 level, traders need to determine if the recent selling is going to keep generating or if the long term bullish trend of the USD/INR is going to reignite.
Selloffs in the USD/INR happen on Occasion, but so do Reversals Upward
Speculators who are tempted to sell the USD/INR with the notion that additional selling is going to take place should be careful. Perhaps the belief that more downwards momentum will develop is correct, but bearish traders may be best served by targets rather close take profit levels below. If the 82.0500 level becomes vulnerable and the 82.0100 mark falter, traders may believe a move towards the 81.9700 mark is attainable. Nervous global financial markets still exist aplenty.
A move below the 81.9100 level would cause technical traders to consider the potential that the USD/INR is ready to make a stronger push lower. However, while considering the possibilities of capturing a genuine shift in the trend of the USD/INR that reflects a change of attitudes among financial institutions, speculators are cautioned to remember the past year of trading.
The Long Term Bullish Trend of the USD/INR Remains Easy to See
- The USD/INR remains within the top level of its long term price range, in fact it remains close to record high values, and betting that the top of the chart has been produced could prove costly.
- While the USD/INR continues to look overbought, until a strong cycle of selling is produced and many support levels fall, the currency pair may continue to produce upward fights.
Speculators who want to continue to pursue upwards movement in the USD/INR cannot be blamed. If current support levels prove durable and resistance levels near the 18.2200 are challenged suddenly, a move above the 82.2300 level could signal another leg up. USD/INR traders may want to try and take advantage of the potential of choppy conditions, and place short term wagers on values that test current support and resistance levels while aiming for quick hitting moves.
USD/INR Short Term Outlook:
Current Resistance: 82.2200
Current Support: 81.9700
High Target: 82.4200
Low Target: 81.8400
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