USD/INR continues to languish at the top of its highs and awaits a boost from global forex which will remain relatively quiet today as financial institutions are mostly not participating.
USD/INR is near 85.7775 as of this writing with extremely quiet trading being demonstrated. Most global financial institutions will stay away from Forex today as the holiday season begins to wind down, but we have another weekend ahead of us. Next week when financial offices see the return of their employees, Forex will start to see high volumes again.
At the moment, USD/INR remains almost pegged to all-time highs, but speculators looking for short-term bets today need to be extremely cautious as the dangers could cost them money. The spread in USD/INR will be wide today and tomorrow due to lack of volume and significant players absent from the market. If a trader has to place a USD/INR position today, they are required to use an entry order to ensure that they are getting fulfillment that meets their expectations. Prices displayed on brokerage platforms are wide across their bids and asks today.
Bias and Speculation in USD/INR Technical
USD/INR continues to occupy values that look very high, but there doesn’t seem to be much pressure from the Indian government, nor the Reserve Bank of India, in terms of higher values. This seems to indicate that the Indian rupee is still considered within an acceptable price range and may be allowed to challenge new highs in the coming weeks. Looking for a sustained decline in USD/INR simply because it is perceived to be overbought could prove to be a costly mistake.
While many speculators may shy away from the idea that the USD is too strong and that other major currencies will begin to show the power of a reversal, global financial institutions remain fragile about their outlook. Financial institutions are unlikely to bet massively against the dollar until they are more confident about economic policies and trade deals with the incoming Trump administration.
USD/INR Outlook and more values
USD/INR technically remains within record highs, but the last two weeks of trading results must be treated with skepticism. Today’s and tomorrow’s trading volume will remain low. The potential for a reaction to the higher USD/INR price range is unlikely to be seen until early next week.
- What USD/INR does from Monday to Wednesday next week will be important.
- If the currency pair continues to break above its higher ratios as Thursday and Friday of next week approach, and as US non-farm payrolls numbers are released on January 10, traders could see even more volatility.
- Firms looking at USD/INR also need to consider the Reserve Bank of India’s role in the Indian Rupee, as they are sure to be a factor next week as well.
USD/INR Short Term Outlook:
Current resistance: 85.7890
Current support: 85.7310
High target: 85.8030
Low target: 85.6990
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