USD/INR Analysis
Morning Update: Will the USD/INR pair continue to rise, or will it touch 82.50-82.70 ?
Last week, USD/INR surprised everyone by increasing about 60 paisas, passing the 83.50 zone and touching the 83.70 zone on the spot, when everyone expected USD/INR to fall below the 82.50 zone. USD/INR surprised everyone by rising from 82.70 to 83.70, roughly 100 Paisa, which was exactly what we discussed in our analysis over the last few days, and we were bullish on USD/INR. Now After reaching the 83.70 level in spot, let's have a look at what can happen next using the USDINR daily chart:
In recent days, the USD/INR has moved sideways within its range, falling below the previously established resistance level of 83.50. The USD/INR exchange rate has varied between 82.70 and 83.50 in recent weeks, dropping below 83.00 last month before recovering significantly to 83.70.
- The USD/INR had traded sideways between 82.70 and 83.50 for the preceding three weeks before abruptly increasing strongly last week.
- The chart suggests a strong support zone of 82.50-82.70, and USD/INR could see strong demand near the 200-day moving average and the 82.50 level.
- The USD/INR is facing heavy supply near 83.50, and Friday's upward move appears to be a bull trap, with a false breakthrough that snagged most bulls.
Please carefully analyze the preceding chart to better understand the USD/INR price movement. For weeks, the USD/INR exchange rate has been between 82.70 and 83.50. Last week, the price increased and closed above 83.50. The USD/INR dipped below 83.00 last month, signaling that the pair is nearing the end of its long-term instability. However, the 200 EMA, which is close to 82.70, saw significant demand, and buyers pushed the price over the 82.70-82.80 range predicted by the USD/INR April monthly option chain. USD/INR jumped directly from 82.70 to 83.70.
The rally last week was a bull trap, and 83.50 remains a significant resistance level. Because the risk-reward ratio for shorting USD/INR is so advantageous right now, one can look for opportunities.
The Dollar-Rupee pair (USD/INR) has been consolidating for several months in the 82.70 to 83.50 range, as illustrated in the chart and option chain above. It appears that consolidation will continue. Despite the dollar index's volatility, RBI policies have kept the USD/INR exchange rate reasonably stable.
The USD/INR pair is projected to consolidate further, reaching 82.50-82.70 or 83.50-83.70. The USD/INR is projected to oscillate between 70 and 100 paisas in the next weeks before settling into a new range. Traders may look at shorting chances in the USD/INR pair at this time. Traders employ the risk-reward ratio to balance their gains and losses. The ratio is important in determining a trade's risk and projected return. In general, bigger risk equals larger projected profits. Anything more than 1:2 is considered an excellent 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 |