- The US dollar has bounced a bit over the last couple of days against the Indian rupee, as we use the 200-Day EMA as a support level.
- This was right around the ₹83 level, but at the end of the day we are stuck between the 200-Day EMA and the 50-Day EMA indicator, which is often an area where you see a bit of a squeeze and a bit of confusion.
Technical Analysis
The fact that we use the 200-Day moving average EMA as a potential support level is not a huge surprise. After all, this is a very commonly followed indicator, so I do like the idea of finding it as a potential entry for a bigger move. However, I think at this point in time you have to look at the US dollar through the prism of whether or not risk appetite is strong, or whether or not it is weak. After all, the US dollar is considered to be a safety currency, and of course we have gotten a little oversold. As long as the 200-Day EMA holds, I think it is important to look at this through the prism of a potential bounce and a buying opportunity.
Top Forex Brokers
The ₹83.25 level is an area that I think a lot of people will be paying close attention to, as it is a previous support level. If we can break back above there, then we challenge that 50-Day EMA, and then we could go much higher, perhaps reaching to the ₹83.55 level, where we had sold off from previously. In general, this is a market that I think continues to see a lot of people interested in getting long, as there are a lot of questions about the global economy, and of course it’s much safer to own the US dollar with its high interest rate at the moment, and people are taking advantage of putting some money to work in the treasury markets as rates are higher than they traditionally are.
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