USD/INR Analysis
Morning Update: Will the USD/INR pair continue to increase, or will it reach 82.50?
In recent days, the USD/INR has traded sideways within its range, dipping below our previously identified resistance level of 83.50. The USD/INR exchange rate has fluctuated between 83.00 and 83.50 during the last three weeks, dropping below 83.00 last month before recovering. Using the USD/INR chart and the March monthly options data, we can forecast whether the trend will continue to decrease or grow.
- For the past three weeks, the USD/INR has traded sideways between 82.70 and 83.50.
- The chart suggests a strong support zone of 82.50-82.70, and USD/INR may see significant demand near the 200-day moving average and the 82.50 level.
- The USD/INR monthly option chain for March shows heavy put writing near the 83.00 strike, suggesting that the pair will soon surpass 83.50.
Please carefully review the preceding chart to better comprehend the USD/INR price movement. For weeks, the USD/INR exchange rate has been between 83.00 and 83.50. Last week, the price fell and closed below the 83 level. The USD/INR fell below 83.00 last week, indicating that the pair is nearing the conclusion of its long-term volatility. However, the 200 EMA, which is close to 82.70, saw substantial demand, and buyers pushed the price over the 82.70-82.80 range anticipated by the USD/INR March monthly option chain.
Let's examine and analyze the March USD/INR monthly option chain.
The option chain in the table above shows a large amount of put writing at the 83 strike, and even though the price has fallen below the 83.00 level in the spot market, the writers have not given up, indicating that purchasers have pushed the price over the 83.00 level. The option chain suggests that the USD/INR pair could restart its strong upward trend and recover to the 83.50 spot level.
The Dollar-Rupee pair (USD/INR) has been consolidating for several months in the 83.00 to 83.50 area, as shown in the chart and option chain above. It appears that consolidation will continue. Despite the dollar index's volatility, RBI policies have maintained the USD/INR exchange rate relatively constant.
The USD/INR pair is expected to stabilize further, reaching 82.50-82.70 or 83.50. The USD/INR is expected to oscillate within a 70-100 paisa range in the next weeks before settling into a new range. Currently, the fall appears to be beneficial for buying USD/INR because the 82.70-82.50 level provides strong support. Traders may look for buying opportunities in the USD/INR pair. Traders use the risk-reward ratio to balance profits and losses. The ratio is useful in calculating a trade's risk and expected return. In general, increased risk leads to higher predicted rewards. Anything higher than 1:2 is regarded as an outstanding risk-reward ratio.
Examine the levels of support and resistance on the daily USD/INR chart. Each level is shown on the spot chart.
|
USD/INR |
Support |
Resistance |
|
Level 1 |
82.70 |
83.50 |
|
Level 2 |
82.50 |
83.70 |