The Indian Rupee has broken through important support levels and speculators may be looking at targets below as they build confidence about the trend of the USD/INR. The Indian Rupee was able to start the week with a flourish of additional sellers of the USD/INR entering the forex market. The USD/INR is now demonstrating support levels between the 75.200 to 75.300 junctures. If those support marks are broken downwards traders could not be faulted for believing a test of early June values between 74.900 and 75.000 may be the next targets if the Indian Rupee continues to add value.
However, while the USD/INR has displayed strength and a return to stronger values for the Indian Rupee which were seen in early June, it should be noted yesterday’s sell-off of the USD/INR occurred after the forex pair traded frequently between the 75.800 to 76.200 levels. This means today and tomorrow’s trading for the Indian Rupee will remain reliant on solid risk appetite in order to create additional value.
Resistance levels for the USD/INR have proven very strong near the 76.200 range. Traders who seek selling positions of the USD/INR will likely want to use resistance levels which are lower and could consider putting stop losses near the 75.900 mark if they choose to enter the market at its current price levels. The USD/INR can be a volatile currency and a sudden burst of buying of the forex pair is certainly not out of the question.
The month of June has seen a consistent test of values between 74.900 and 76.000 for the USD/INR. What will intrigue speculators who believe a selling position of the USD/INR is the right decision is the fact that in the middle of May the Indian Rupee actually traded near the 74.500 level. This happened after initially recovering from economic concerns which hit the USD/INR in late March and caused a vast amount of volatility in April.
The USD/INR remains a speculative forex pair for traders. However, the Indian Rupee has shown the ability to deliver stability the past few weeks again, and its current value level indicates the USD/INR may have more room for speculative selling.
Indian Rupee Short Term Outlook:
Current Resistance: 75.90
Current Support: 75.200
High Target: 76.200
Low Target: 74.900
