The USD/INR pair oscillates in a range around the 83.20-83.25 area during the Asian session on Tuesday and remains well within the striking distance of over a one-month high touched the previous day. The technical setup, meanwhile, still seems tilted in favour of bullish traders and suggests that the path of least resistance for spot prices is to the upside.
The positive bias is reinforced by the fact that the USD/INR pair is holding comfortably above technically significant 100-day and 200-day Simple Moving Averages (SMAs). Moreover, technical indicators on the daily chart have been gaining some positive traction and are still far from being in the overbought territory. This, in turn, validates the constructive outlook and supports prospects for an extension of the recent upward trajectory witnessed over the past week or so.
Hence, a subsequent strength back towards challenging the all-time high, around the 83.45 region touched in August, looks like a distinct possibility. Some follow-through buying will be seen as a fresh trigger for bulls and allow the USD/INR pair to conquer the 84.00 round-figure mark. Bulls, however, might refrain from placing aggressive bets and prefer to wait on the sidelines ahead of the crucial FOMC monetary policy decision, scheduled to be announced on Wednesday.
On the flip side, any meaningful corrective slide might now find decent support near the 83.00 level and bought into near last week's swing low, around the 82.80 area. This is followed by the 100-day, currently around the 82.45 region, ahead of the 200-day SMA near the 82.30 zone. A convincing break below the said support levels might prompt some technical selling and make the USD/INR pair vulnerable to accelerate the downward trajectory towards the 82.00 round figure.
The USD/INR pair could slide further towards the July monthly swing low, around the 81.70-81.65 region. Failure to defend the latter will suggest that spot prices have topped out in the near term and pave the way for deeper losses. The pair might then weaken further below the 81.35 intermediate support and eventually drop towards testing sub-81.00 levels.
© 2011-2023 TeleTrade-DJ International Consulting Ltd
This website is operated by TeleTrade-DJ International Consulting Ltd which is registered with the Department of Registrar of Companies and Intellectual Property of the Companies of the Republic of Cyprus as a private limited company with registration number HE272810 and is authorized by the Cyprus Securities and Exchange Commission ("CySEC") to act as a licensed Cyprus Investment Firm ("CIF") with license number 158/11. TeleTrade-DJ International Consulting Ltd operates in accordance with Markets in Financial Instruments Directive (MiFID).
The content on this website is for information purposes only. All the services and information provided have been obtained from sources deemed to be reliable. Teletrade-DJ International Consulting Ltd ("TeleTrade") and/or any third-party information providers provide the services and information without warranty of any kind. By using this information and services you agree that under no circumstances shall TeleTrade have any liability to any person or entity for any loss or damage in whole or part caused by reliance on such information and services.
TeleTrade cooperates exclusively with regulated financial institutions for the safekeeping of clients' funds. Please see the entire list of banks and payment service providers entrusted with the handling of clients' funds.
Teletrade-DJ International Consulting Ltd currently provides its services on a cross-border basis, within EEA states (except Belgium) under the MiFID passporting regime, and in selected 3rd countries. TeleTrade does not provide its services to residents or nationals of the USA.
Risk Warning: Trading Forex and CFDs on margin carries a high level of risk and may not be suitable for all investors. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 64.58% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Prior to trading, you should take into consideration your level of experience and financial situation. TeleTrade strives to provide you with all the necessary information and protective measures, but, if the risks seem still unclear to you, please seek independent advice.