The USD/INR is trading slightly below apex values in early this morning following another flurry of bullishness in yesterday’s market.
The USD/INR is trading near the 82.8400 vicinities with relatively fast price action. The USD/INR reached a high of almost 83.0000 yesterday, after the U.S. inflation report via the Consumer Price Index showed that costs remain stubborn. This outcome essentially confirmed the nervous rhetoric coming from the U.S. Federal Reserve regarding consumer prices. The USD/INR which has been trending higher since the 23rd of January, climbed again yesterday with rapid motion.
Current values of the USD/INR in the past couple of hours have displayed an ability to reverse slightly lower. The USD/INR is now testing values seen on the 7th of February. A behavioral sentiment that has been fragile the past couple of weeks due to the strong U.S jobs numbers was given another reason to take the U.S. central bank’s statements about the need to continue raising interest rates over the mid-term seriously via yesterday’s inflation numbers.
Record Highs Plainly within Sight for the USD/INR
The USD/INR is clearly within sight of record high values, which were made in October of 2022 when the currency pair traded near the 83.3000 level. Yesterday’s high water mark did not burst above the 83.0000 level, but trading results near the important psychological mark were certainly a talking point. Financial houses now have to readjust their outlooks and consider the possibility the U.S. Fed will raise interest rates in March and in the months ahead until it feels inflation has been defeated.
Short-term speculation may remain in the higher price range for the USD/INR in the near term. The U.S. will release Producer Price Index data on Thursday which could help spur on some selling in the USD/INR if the numbers are weaker than anticipated. However, traders wagering on the outcome of this inflation report should acknowledge that this is dangerous and risk-taking tactics will be crucial.
Support near the 82.8000 vicinities should be monitored in the USD/INR
- Traders who believe the USD/INR is too high should not be overly confident short-term and watch support near the 82.8100 to 82.7900 ratios. Traders should not be overly ambitious today.
- Tomorrow’s U.S PPI reports being another opportunity to bet on USD/INR volatility, if the inflation number is higher than expected the 83.0000 level could be proven vulnerable.
- If the inflation outcome is weaker than expected it could help spur bearish momentum to the 82.4000 level.
Day traders who want to participate in Forex via the USD/INR should be very cautious near-term. Behavioral sentiment remains nervous and tomorrow’s U.S inflation reports will be important and spur volatile conditions.
USD/INR Short-Term Outlook:
Current Resistance: 82.8740
Current Support: 82.7980
High Target: 83.0250
Low Target: 82.7110