USD/INR: Sudden Turn Lower a Respite for Traders from Highs – 01 March 2023
Traders who have been waiting for bearish momentum in the USD/INR to become energetic again may have had their optimism sparked later yesterday.
The USD/INR is trading in a rapid manner, having moved lower since the publication of U.S Consumer Sentiment numbers which came in negative late yesterday.
After challenging apex highs on Monday, the USD/INR has fallen to fresh near-term lows early on Wednesday. Current price action within the USD/INR is producing fast price velocity and speculators should be careful about the potential of whipsaw results as choppy Forex conditions are being demonstrated. The price of the USD/INR as of this writing is near the 82.4900 level, but readers are urged to compare this to the market value as they look at this article.
Yesterday’s negative CB Consumer Confidence numbers from the U.S put the USD on weaker footing, which caused a broad selloff of the currency in Forex, and the USD/INR has correlated to global market moves. However, the downside for the USD/INR remains still within the upper tier of the long-term price range and traders should be careful not to misinterpret this move lower as a definite sign of things to come. Reactions to short-term support levels are producing quick reversals thus far.
Traders who have been waiting for bearish momentum in the USD/INR to become energetic again may have had their optimism sparked later yesterday. But before speculators get too confident about the capability of the USD/INR suddenly sustaining trading lower, they should consider that plenty of U.S data will be coming today and next week which will continue to make the currency pair react nervously.
The U.S. will see the publication of the ISM Manufacturing PMI today and if this number meets expectations or comes in weaker than anticipated it could help the USD/INR selloff further. Support levels in the USD/INR should be watched carefully today. If the 82.4500 to 82.41000 ratios are challenged and begin to look vulnerable, it could mean there is behavioral sentiment within financial houses that still view the USD/INR as being overbought.
The USD/INR has spent the past four weeks exhibiting a strong bullish trend that has brushed aside resistance levels rather easily. The bullish trend will not be easy to kill off.However, late yesterday and early today’s selloff show the USD/INR is correlating to the global Forex markets.
Traders should use conservative risk-taking tactics today. Yesterday’s poor economic reading from the U.S has helped the USD/INR track lower. However, nervous conditions remain regarding the U.S. Fed’s outlook.
Today’s manufacturing numbers would have to be lower to give an additional boost to the potential of selling the USD/INR to become more aggressive in the short-term and this still doesn’t mean the USD/INR will nosedive completely. Sellers of the USD/INR today who try to wager before the U.S ISM Manufacturing Index report should use stop losses to guard against the potential of things going in the wrong direction.
Current Resistance: 82.5460
Current Support: 82.4370
High Target: 82.6220
Low Target: 82.3710