USD Receiving a Bit Against Indian Rupee

[ad_1]

The US dollar has fallen a bit against the Indian rupee during trading on Thursday but has found a bit of buying just below the ₹76 level. By doing so, the market ended up forming a bit of a hammer which looks quite a bit like a perfect “pull back and retest” of the overall trend. Because of this, if we can break above the top of the candlestick for the Thursday session, it is very likely that the pair will go looking towards the ₹76.50 level.

Advertisement

The rupee has been extremely popular lately – don’t miss these interesting opportunities!

Trade Now

Market participants continue to see the US dollar as a greater value, as we have been in an uptrend. Furthermore, you have to worry about some emerging markets as a global slowdown is certainly going to be felt places. The Indian government is not only is the most business friendly, and therefore the US dollar does tend to “buck the trend” against emerging markets in this currency pair at times.

Underneath current trading, the ₹75.50 level might be an area of interest, as it has not only been structurally important previously, but it also has the 50 Day EMA moving into the same area. Because of this, I would anticipate that a certain amount of technical buying may occur if we get to that area. I do believe that it is probably only a matter of time before we continue the uptrend, but if we were to break down below the ₹75 level, then we might have bigger issues at hand.

It is difficult to imagine a scenario where the US dollar sells off for an extended amount of time, simply because the world’s economy seems to be slowing down and of course we have issues when it comes to a whole host of things, not the least of which would be a war in Ukraine. The US dollar is a safety currency, and while the cross between the greenback and the rupee is not necessarily one of the heavily traded currency pairs, US dollar strength or weakness across-the-board typically will have at least some effect on what happens here. Because of this, I think that we are setting up for a continuation of the rally and perhaps a move to the ₹77 level over the longer term. It might take a while to get there, but it certainly looks as if that is what we are setting up to do.

USDINR

[ad_2]

Leave a Reply

Your email address will not be published. Required fields are marked *

Risk warning: Trading Forex (foreign exchange) or CFDs (contracts for difference) on margin carries a high level of risk and may not be suitable for all investors. There is a possibility that you may sustain a loss equal to or greater than your entire investment. Therefore, you should not invest or risk money that you cannot afford to lose. Before using xMetaMarkets services, please acknowledge all of the risks associated with trading.

The content of this website must not be construed as personal advice. We recommend that you seek advice from an independent financial advisor.

The information on this website is not directed to residents of certain jurisdictions such as United States, Canada, Iran, Cuba, France, and some other regions, and is not intended for distribution to, or use by, any person in any countries or jurisdictions where such distribution or use would be contrary to local law or regulation.

© 2018 - 2024 xMetaMarkets.com. All Rights Reserved.