The USD/INR is near the 85.3500 ratio as of this writing with its rather typical wide spread being seen via bids and asks which leave the door open to speculative wagers for traders using entry price orders.
Before day traders get confused by the following, let’s point out the Indian Rupee remains within a rather controlled price fixture supervised by the Reserve Bank of India with a strong grip. The USD/INR remains very difficult for Forex speculators located in India to wager on via brokerage platforms located in the nation. However, large amounts of traders in India and outside of the country do seek out brokers who have the ability to offer the USD/INR on platforms from afar.
Yet, the USD/INR even if access is made available remains a difficult trading pair to pursue. The USD/INR has lower volumes compared to many major Forex pairs and the rather wide spread in the USD/INR makes getting a justified price to begin a trade rather problematic. It is hard trading the USD/INR as a short-term wager.
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Current Values and Speculative Outlook
The USD/INR is trading near the 85.3700 realms via a wide spread on trading terminals at this hour. The currency pair is showing higher fluctuations near the 85.4100 to 85.4300 being seen rapidly. Traders hoping to get a fill that doesn’t shock them will need to use entry orders and then hope that sudden wide spreads being shown on brokerage screens do not knock them out of a trade almost as soon as they begin, this because too much leverage was being used.
The point is that the USD/INR remains extremely difficult to trade for inexperienced traders. Financial institutions and commercial companies use to the intraday volatility in the USD/INR are better suited to deal with the fast price action. The Reserve Bank of India clearly allows the USD/INR to trade in a semi-free manner, but they certainly keep an eye on the currency pair’s value and make sure ratios maintain a known and acceptable value range that meets the government’s criteria.
USD/INR Known Mid and Long-Term Prices
In a sense it is fair to say the Forex game in the USD/INR is rigged. Yes, volatility is definitely seen and changes to value take place, but oddly enough when charts are looked at for the USD/INR, it can easily be said to be trading near late March values and ratios from December 2024 interspersed with volatility.
- Even after a whirlwind of results in which lows around the 84.2000 and highs near 87.5000 have been tested with outliers, the USD/INR remains rather tightly controlled.
- When the value changes of the USD/INR are studied, the currency pair is less volatile compared to many major currencies paired against the USD in a pure numerical comparison.
- And this leaves the door open to the temptation to trade the USD/INR and pick a perceived technical trend which appears to be developing.
- However, speculating on the USD/INR has to be done very carefully because of the whims of Reserve Bank of India and its rather interesting ability to create momentum as it chooses.
USD/INR Short Term Outlook:
Current Resistance: 85.4320
Current Support: 85.3000
High Target: 85.5800
Low Target: 85.0700
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