USD/INR forecast: March 2022
USD/INR crosses the realms of its near to mid-term higher ranges as global tension has added an additional ingredient into the mix for Indian Rupee speculators.
USD/INR is near the 75.5000 level at the time of this writing. The global tensions caused by the war that Russia has unleashed against Ukraine is certainly adding a high level of nervousness within the global financial markets and the Indian rupee is feeling the effects. While technical traders often follow the adage that market noise regarding news events should not be given special attention, the circumstances regarding current developments should probably be taken into consideration.
Last month of trading within the USD/INR produced absorbing technical contemplation. The 15thand In February, USD/INR traded around the 75.6800 level, then fell to near a depth of 74.3100 only a few days later. However, since the lows seen a week ago, USD/INR has risen again and the lows that touched the marks seen in the third week of January have disappeared for the time being. A mark of 75.8000 was overturned on the 24thand from February.
The currently contested high USD/INR range could prove to be a rather dynamic price range in the days and weeks ahead. As global tensions escalate due to the raging war in Ukraine, traders should remain calm, but they should also consider the nervous reactions that can suddenly arise to any new development. Not only is the turmoil in Europe worrying forex traders, but USD/INR is also affected by speculative elements surrounding the US Federal Reserve and the potential action the US central bank will take in March.
Technical traders may not want to hear about it, but USD/IND seemed to digest the news that the US Federal Reserve has made clear its intention to aggressively raise interest rates this spring. After peaking near 76.4000 in mid-December 2021, USD/INR fell to a low of around 73.7200 on the 12and of January. Since 24and January USD/INR traded in a range of around 74.4200 to 75.7500 marks.
The fact that USD/INR is in sight of its highs in its current price range is certainly fueled by the nervous global sentiment within the financial markets. Until financial institutions begin to feel more comfortable with the increased risk caused by the Ukrainian war inflicted by Russia, traders may continue to be at the mercy of jittery market sentiment that may be boosted enough suddenly.
Experienced traders know that USD/INR can produce a fairly solid amount of volatility on its own, and has a history of breaking technical support and resistance levels quite easily when only short-term charts are used. The added dimension of a war in Europe will not create a calm trading landscape, but speculators may find that over the next few weeks financial markets may become more accustomed to the situation.
USD/INR outlook for March 2022:
The speculative price range for USD/INR is 74.4100 to 76.2200.
The current support for USD/INR appears to be around 75.2500 with a distant support ratio of 75.0500 looking quite durable given the technical and global circumstances.. If the current support levels falter, traders may believe that a low of 74.7500 could be reached, but this mark, in the current conditions lurking in global markets, could turn out to be a support level instead. sustainable in March and a place to look for the upside. the price action of USD/INR.
If USD/INR challenges current resistance near the 75.6000 ratio and holds its value above, traders might be tempted to believe that the 75.7000 mark is a legitimate target.. If this higher price area sees action above and 75.8000 is retested due to nervous sentiment within global markets, USD/INR could find itself breaking through the 76.0000 junction. .