Global equity markets appear to be leaning towards optimism this morning and this has proven to be the case in India too. As equity indices produce gains in the short term, traders with better risk appetite appear ready to sell the US Dollar too. The Indian Rupee has moved towards support this morning and the selling of the USD/INR may be able to sustain itself today.
A solid amount of resistance continues to be displayed near the 76.100 juncture. The Indian Rupee has seen a rather choppy trading this week, but it has accomplished this in a fairly stable value range. The USD/INR did soar towards 76.300 two days ago, but a quick reversal was able to develop downwards. Speculative traders know there are always methods to trade both sides of price fluctuation in forex. However, the USD/INR may be signaling an opportunity to sell the forex pair between values of 76.000 and 76.050 today.
Trading going into the weekend can prove a dangerous task, so traders must consider their time parameters carefully and their risk management capabilities. Short term support for the USD/INR appears vulnerable around 76.000 and traders may even want to sell the forex pair if this value is being touched and target the 75.900 to 75.950 levels for potential profits.
The five day range of the USD/INR shows a value range between 75.500 and 76.300. Interestingly, the range also indicates the potential for further price action below the 76.000 level, particularly if risk appetite improves on the global markets and equity indices show an ability to put in gains before going into the weekend. Traders must also realize when they are trading the USD/INR that volumes are not huge and volatility can emerge. If speculators accept the knowledge that values can sometimes produce fireworks and have their risk management working, then they should be able to test the USD/INR with a selling position.
Upside risks for the USD/INR forex pair appear to be less likely because resistance does seem strong around the 76.100 to 76.200 levels. The Indian Rupee appears to have more room to move downwards and pick up value as it tests what seem to be vulnerable support levels.
Indian Rupee Short Term Outlook:
Current Resistance: 76.100
Current Support: 75.900
High Target: 76.200
Low Target: 75.800
