The downtrend is gaining momentum for speculative games
USD / INR has managed to pass through additional support levels, and significant early April values below are now in sight.
The USD / INR maintained its bearish trend and made support levels vulnerable, as perceived economic conditions were ruled out quite easily. Early in this morning’s session, the USD / INR traded slightly higher, but last week’s support levels are current resistance levels. Speculators who prefer more bearish price action from the Forex pair may believe that momentum will be re-energized after this morning’s rise to rather quiet technicals.
The USD / INR is now in sight of important prices in early April, which were recorded before a wave of risk aversion sentiment struck when concerns about a new wave of coronavirus began to impact on the 7e of the month. At the time of this writing, the 73.4100 junction is being explored and if this ratio is maintained it could indicate that the levels of 73.3500 to 73.2700 could become a legitimate target for traders. .
The pace of USD / INR trading remains fast and volatile. The rather rapid downtrend within the Forex pair since the 3rd of May technically and fundamentally points out that there appears to be a belief that higher values from the first week of April to the end of the month were a reaction to fears about the coronavirus. The counter-trend that is currently observed may have additional leeway.
The resistance levels above can certainly be used by traders who believe there will be a higher natural cycle following the downtrend that has now developed. However, in order for speculators to profit from a higher move, they will need to be extremely alert and use limit orders to enter and exit the USD / INR in order to cash their gains before other moves in the market. downside potentials are triggered. From a risk / reward scenario, the USD / INR appears to have the potential to explore lower values with more significant strength.
If early April values are called into question in the short term, traders could see fairly rapid trading flare up, which could wipe out more support levels. No, the USD / INR is not guaranteed to move in one direction; the bearish momentum could end if sentiment changes in any way. However, traders cannot be faulted for believing that a further sell off of the USD / INR is going to be demonstrated. Conservative traders may want to wait for slight upward moves which will then allow them to aim for near support levels that could be tested in the near term.
Indian Rupee Short Term Outlook:
Current resistance: 73.5300
Current support: 73.3200
High Goal: 73.7000
Low target: 73.0900