Move higher resistance and speculators
The USD / INR produced another higher leg, which allowed the Forex pair to challenge resistance levels seen almost two weeks ago.
The USD / INR has broken through significant short-term psychological barriers over the past few days and is crossing an intriguing resistance not seen since the 20e of May. The upward movement will challenge speculative perceptions, and traders who actively pursue bearish momentum have likely been hurt if they haven’t used proper risk management.
The upward mobility of the USD / INR has been stronger than expected, but the Forex pair certainly remains in a bearish technical mode when looking at the long term. The question now for short-term speculators is where the direction will unfold over the next couple of days. Attempting to further lower the USD / INR likely raised doubts among bearish speculators. But if they have used stop-losses while engaging in their risk-taking efforts, they may still want to consider the potential for a downward movement.
The ability of the USD / INR to produce this fairly strong upward movement must be respected, and the movement must be accepted as part of the working environment.. At the time of this writing, the USD / INR is trading slightly below the 73.1000 level and, if values can be held at this point, traders may think that the target of 73.0000 will be hit sooner rather than later. .
The USD / INR has certainly given a hard time to traders who have found themselves on the wrong side of the trading field in recent days. However, cyclical upward and downward reversals are part of the natural Forex landscape and experienced traders understand that this means that the use of limit orders, profit-taking and stop-losses is necessary. Short term traders should know that they should not stay married to one position. When the market goes against them, it’s often best to abandon a trade and not let it eat up all the money from an account just because of stubbornness.
The USD / INR seems technically overbought at its current levels. The recent upward movements in the Forex pair can be seen as a strong reaction to the significant bearish momentum that the USD / INR has exhibited since the end of April. This three-day bullish move may prove to be short-lived. Speculators who have the stamina and the ability to use proper trading techniques may want to sell short-term USD / INR as a bet.
Indian Rupee Short Term Outlook:
Current Resistance: 73.2500
Current support: 72.9850
Target high: 73.3590
Low target: 72.6500