The USD/INR touched new highs in early trading today as the currency pair continues to show signs of its bullish trend remaining strong.
Speculators of the USD/INR may be tempted to wager against the upside action the currency pair is attaining. However, under the present trading conditions of the USD/INR, selling positions should not be overly ambitious. Speculators shorting the USD/INR should only hope to pocket quick hitting profits based on the notion that reversals downward could prove to be temporary. Seeking a strong move lower could prove expensive short term.
The rupee has been extremely popular lately – don’t miss these interesting opportunities!
Record Prices may Have Additional Roam to Traverse Higher Near Term for USD/INR
Traders who are simply looking to buy the USD/INR do need to be careful. Yes, the move higher has been impressive, but staying realistic is important while speculating in Forex. The move over the 79.0000 has been accomplished with a strong amount of momentum and psychologically speculators may be targeting the 80.0000 mark, but the next run higher may not ignite short-term.
If the 79.7000 Level is Surpassed Traders may Look for 80.0000 Psychologically in the USD/INR
While traders cannot be blamed for believing the 80.0000 is a legitimate goal, being able to time the potential rise could be difficult and costly if the USD/INR doesn’t produce the results wanted fast enough. Realistic targets are important while trading. Looking for technical resistance levels are difficult when record highs are being made, but waiting for slight reversals lower and anticipating a rebound higher which aims for resistance levels accomplished earlier in the day can prove to be worthwhile sometimes. Aiming above the higher marks needs patience and ability to emotionally remain calm.
Record highs in USD/INR make the search for resistance difficult, but using price reversals lower and then aiming for recent highs is a realistic goal.Volatility as the USD/INR traverses new highs should be expected.
The mark of 79.6000 in the short term appears to be proving durable as resistance, but if this mark is toppled speculators could begin to look at the 79.7000 and 79.7500 levels as realistic. The USD/INR is historically a currency pair that delivers a significant amount of volatility with spikes suddenly erupting, particularly when the USD/INR receives its first initial wave of trading during each day. Today’s move higher was accomplished via a strong surge upwards early in the morning.
The USD has been strong across the board in Forex yesterday and today. The USD/INR may continue to see a swirl of activity in the near term as financial houses looks for equilibrium and consider the next moves by the U.S Federal Reserve and its implications for currency pairs. Traders looking to buy the USD/INR cannot be blamed, but stop loss and take profit orders should be used to make sure risk-taking tactics remain practical and do not result in costly mistakes. Record values sometimes lead to violent trading in Forex and the USD/INR may not be immune to this type of behavior.
USD/INR Short-Term Outlook
Current Resistance: 79.6300
Current Support: 79.3900
High Target: 79.9800
Low Target: 79.0300