Range Equilibrium as Volatile Conditions Threaten

Day traders looking to take advantage of their speculative perceptions need to be cautious and practice solid risk management with the USD/INR.

The USD/INR has produced a reactionary price range over the past five days as the currency pair seemingly fights within a speculative but consolidated framework.

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The USD/INR is near the 81.4500 ratio as of this writing, after touching a high of nearly 81.8250 early this morning. The USD/INR has been opening the past week of trading with significant gaps and prior to the high this morning, the currency pair had started around 81.6000 to start today. Last week after the U.S inflation data via the Consumer Price Index the USD/INR fell to nearly 81.0700 and going into the weekend was around the 81.1600 realms.

The buying action the USD/INR has experienced this week may be a reaction to the notion the USD/INR was oversold late last week. Intriguingly however is that yesterday’s high around 81.8840 was not toppled in early trading this morning, and the swift reversal lower the past few hours has brushed off short-term support levels with ease.

Results in the USD/INR are dynamic and dangerous for Day Traders

Day traders looking to take advantage of their speculative perceptions need to be cautious and practice solid risk management with the USD/INR. Narrow stop losses are urged for traders tempted to use large amounts of leverage when wagering because the USD/INR is capable of continuing to produce fast changes which suddenly erupt.

Traders should pay attention to the 81.4200 to 81.3900 support levels; if they are broken lower and sustained this could signal financial houses believe more downside action will take place.
This morning’s low of nearly 81.4200 has already broken below yesterday’s low of around 81.5000.

USD/INR Push Lower this Morning is Volatile and may remain the Case

Speculators should be prepared for additional fast conditions in the USD/INR as the currency pair seeks equilibrium. The ability to maintain value under the 82.0000 ratio the past week is significant. And if the USD/INR is able to now sustain prices under 81.5000 in the near term, this may be a sign that last Thursday and Friday’s selloff of the currency pair may continue to be flirted with by traders.

Last week’s strong momentum down to the end of the week and this week’s early reversal higher speaks to the notion the USD/INR remains very reactionary. The developing bearish trend in the USD/INR the past month has certainly not been a one-way avenue and traders looking to take advantage of moves lower need to be braced for quick turns. Short-term results will likely remain challenging, so narrow take-profit targets are advised for day traders who do not want to hold a position for too long a duration while the USD/INR remains dynamic.