Rapid bullish momentum increases rapid volatility
USD / INR rose over the last day of trading and its price velocity saw increased volatility as medium term highs are tested.
The USD / INR is trading near the 74.9000 junction early in today, after actually trading above the 75.0000 junction briefly yesterday. USD / INR volatility has increased as resistance levels have proven to be vulnerable and the reversal of highs occurs in rapid jerky movements. After breaking through the 74.7000 level yesterday, the USD / INR saw a buying push. As the pair exited yesterday’s highs, the USD / INR continues to cross its upper price range.
Yesterday’s highest values slightly exceeded the top mark reached on 19e July of about 74.0300. Experienced traders within the USD / INR recall the higher range reached in April when a high of near 75.5700 was briefly touched on the 21st.st April. The higher prices reached in April came amid a wave of coronavirus concerns hitting India. This time around, the bullish momentum is likely caused by a complex mix of a stronger dollar due to nervous global investment sentiment and statements from the US central bank.
Technically, 75.0000 may seem like a key psychological resistance level. If this barrier is crossed and prices are held above this point, it would likely indicate that additional buying momentum will be generated in the short term. Speculators who believe the USD / INR is overbought and wish to seek short positions are advised not to be overly ambitious with their bets and target limited downward movement.
Current support appears to be around the 74.8300 level. Market conditions for USD / INR are rapid and traders should be aware of the speed of price changes that are potentially likely to occur if market conditions remain nervous on a global scale. Speculators are advised to use strong entry price orders to ensure that their “fillings” meet their expectations.
The USD / INR is certainly crossing the higher areas of its long-term price range. However, conservative traders are reminded that the Forex pair has already crossed these highs. It is not out of the question to trade above the 75.0000 and speculators who doubt that higher moves will occur may want to check out a one-year price chart.
Buying the USD / INR on slight downward movements and then looking for upward price action can be an interesting bet. Traders should be careful, but current resistance levels can be vulnerable. Traders may be tempted to buy USD / INR around the 74.8700-74.8400 levels and also look for limited bullish momentum for quick bets.
Indian Rupee Short Term Outlook
Current Resistance: 74.9700
Current support: 74.8300
High target: 75 1100
Low target: 74.7100