The USD / INR 75.0000 trading environment remains a focal point and could puzzle speculators as to the potential volatility that could ignite in the near term.
As of this writing, the USD / INR is hovering near the 75.0000 junction, and early this morning the Forex pair hit a low near 74.8700, which then triggered an upward reversal. Before heading into the weekend, USD / INR traded near the 74.6500 ratio, but started to see bullish momentum developing. Friday’s low called into question values not seen since the first week of October.
Technical traders looking at the one and three month charts of the USD / INR will quickly come to the conclusion that the pair is staying in the upper bounds of its value range. The currently disputed 75.0000 price could prove to be a significant psychological battle. Some speculators may take anything above this ratio as an indication that the Forex pair has been overbought.
Certainly since he hit a high on the 12e October, which hit the April high, the Forex pair saw incremental sells. Volatility remains a potential enemy within the USD / INR for traders, and conservative market participants may want to see more momentum develop in a particular direction before attempting to continue a trend. The current support near the 74.9400 price is relatively close and, if that level starts to undergo testing, it may indicate that further selling will ensue.
More aggressive traders may view the 74.9700 to 74.9400 junctions as logical places to place take profit orders if they sell the USD / INR in its current price ratio. From a risk-return perspective, there is reason to suspect in the short term that the USD / INR has the potential to find a more robust downward path versus an upward movement. Yes, the USD / INR remains in its upper technical range over the long term, but speculators can be tricked into believing that there is not much ground to reach higher.
Traders should remain cautious in USD / INR and use stop orders with caution. However, the rather obvious technically demonstrated support and resistance levels can make the pair an attractive short-term bet. Selling USD / INR and looking for more bearish momentum to demonstrate could prove to be an interesting position. Traders who are fortunate enough to have profitable trades should not get too ambitious in the short term.
Indian Rupee Short Term Outlook:
Current Resistance: 75.1030
Current support: 74.9400
High Target: 75.1860
Low target: 74.7800