The USD/INR has continued to challenge support levels and proven they are vulnerable since Thursday of last week; price action has been quick too.
The USD/INR is trading near the 81.3600 ratio as of this writing, but readers are urged to compare this value to current market conditions as they investigate potential wagers. Price velocity in the USD/INR has been dynamic since last week, this when the USD/INR had been within the higher realms of its upper range before starting to selloff. Since the U.S Federal Reserve pronouncements last week, the USD/INR has turned lower as behavioral sentiment in financial houses has seemingly shifted.
High Water Marks should be considered, but the Trend may have Finally Shifted in USD/INR
While the USD/INR certainly remains within the upper realms of its long-term technical charts, a bearish trend has seemingly begun to emerge. Speculators cannot wager blindly, they need to practice risk management well, but traders cannot be blamed for believing the USD/INR has seen the end of its apex highs. There are obviously no guarantees, but perhaps the ‘worst’ of the U.S Federal Reserve news has been digested and the USD has now taken a legitimate weaker turn.
Trading in the USD/INR mirrors the broad Forex marketplace. The ability to break through the 82.0000 level yesterday with selling pressure and sustain prices below was a solid bearish indicator. This morning’s trading opening has sustained yesterday’s sharp drop in value and reinforced short-term bearish sentiment. A low of nearly 81.1890 was seen on Tuesday, yes, there has been a slight reversal higher, but resistance near the 81.5000 mark looks to be potentially solid.
Fast Moves and Potential Reversals should be guarded against in the USD/INR
Speculators need to understand there are no one way avenues when betting on the USD/INR or any other Forex pair. The near-term will no doubt produce reversals higher, but if resistance begins to be durable, incremental bearish selling could build momentum.Tomorrow’s inflation data via CPI statistics in the U.S will have an effect on sentiment, but it may prove to be short lived.
If the USD/INR can sustain its current price range achieved after yesterday’s selloff, this would be an encouraging sign for USD/INR bearish traders. Having seen sharp declines yesterday, traders should remain realistic regarding today and tomorrow’s potential results, but selling the USD/INR if the currency pair traverses slightly higher while looking for more downside movement may be a worthwhile wager. Support near the 81.2900 vicinity could prove an interesting target.
USD/INR Short Term Outlook:
Current Resistance: 81.4600
Current Support: 81.3090
High Target: 81.6320
Low Target: 81.1300