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The USD/INR has seen whipsaw results on the last day of trading, as it ripped to a high above 82.0000 briefly yesterday, and then in early trading this morning gapped lower.
Day traders of the USD/INR should practice extreme caution today. Trading over the past twenty-four hours has been turbulent at best and as of this writing the price of the USD/INR is near the 81.7900 ratios. However, speculators need to compare the current price of the USD/INR to the written value here to gain evidence that volatility is strong.
A high of nearly 82.0780 was achieved yesterday as a strong surge upward suddenly erupted in the USD/INR. When yesterday’s trading opened yesterday, the USD/INR was near the 81.5300 ratios before seeing its value increase rapidly. Some experienced traders may believe the wild ride upwards which tested highs last seen on the 10th of January was an attempt to destroy short sellers. However, this type of thinking is nearly impossible to produce evidence to determine.
Traders should focus on the USD/INR as it readies and reacts to the U.S Federal Reserve
Instead of worrying about potential conspiracy Forex trading theories regarding volatility in the USD/INR the past twenty-four hours, speculators should be focused on what is going to develop going forward. Later today the U.S Federal Reserve will release its interest rate mandate and is expected to hike the key lending cost by another 0.25%.
However, the hike to the interest rate will likely not generate much turbulence, because it has been factored into the USD/INR already. The real focus is what the U.S. Federal Reserve will say regarding its Monetary Policy Statement about the outlook. If the Fed lets it be known they intend on becoming less aggressive and are considering a pause of interest rate hikes in the months ahead, this will spur on dynamic price velocity in the USD/INR.
Support and Resistance Levels in the USD/INR will Prove Vulnerable Today
- Traders of the USD/INR must be braced for volatility today, because it will certainly be seen.
- Support and resistance levels in the USD/INR may prove technically vulnerable immediately before and after the U.S Federal Reserve pronouncements.
- Conservative use of leverage, and stop loss and take profit orders in the USD/INR will be needed to trade safely.
- Traders may want to use narrow take profit targets and slightly wider stop loss orders today to navigate the USD/INR waters if they want to wager.
Traders looking for downside potential development cannot be blamed, but because the U.S. Federal Reserve needs to confirm a less aggressive monetary policy stance first, this is purely a speculative bet. Perhaps selling at high levels when technical resistance is challenged will work for speculative short positions, but traders must be braced for havoc which could prove costly today if they are not careful.
USD/INR Short-Term Outlook:
Current Resistance: 81.8150
Current Support: 81.6410
High Target: 82.0900
Low Target: 81.0800
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