USD/INR Analysis Today - 6/11: Record High Jump! (Chart)

(MENAFN- Daily Forex) The USD/INR has responded to the election of Donald Trump as the President-elect with a strong jump higher early today, and the currency pair is traversing near the 84.2200 mark with fast conditions and a large price spread.

• While the USD/INR has been trading in a non-correlated manner with the broad Forex market for a considerable amount of time, there are events which certainly can cause a reaction in the currency pair.
• The election of Donald Trump as the President-elect has caused a rupture higher in early trading today.
• The broad Forex market has seen a massive wave of volatility strike currency pairs, so the USD/INR is certainly not alone. The move higher in other words is a reflection of global conditions in the short-term.

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Day traders who have been trading the USD/INR hopefully did not have selling positions working going into today's market action. The next two days in Forex will remain fast for global financial institutions. Even the Reserve Bank of India will have to consider shifts in behavioral sentiment in the near-term as a fresh economic outlooks confront investors. However, traders need to remember that volatility generated in the wake of the U.S election should have been expected and will start to calm is a New Day and it Brings the U.S Federal Reserve

The bullish momentum in the USD/INR has been on full display for a handful of months. The ability of the USD/INR to throttle higher and create record highs in the wake of the U.S election results should not be a surprise. The question now becomes what happens next. And the U.S Federal Reserve will be taking the podium tomorrow via their FOMC interest rate decision.

However, as USD/INR traders know the currency pair has not correlated with the USD much the past half year. Yes, the USD has been strong in Forex against all currencies since the end of September as risk adverse trading has come into global markets, but technically an attempt to correlate the performance of the Indian Rupee to this price action may be a false narrative. The U.S Fed is likely to cut its interest rate by a quarter of a point tomorrow, but what will happen to the USD/INR? Day traders may want to remain on sidelines in the currency pair Volatility Coming in the USD/INR

The ability of the USD/INR to surge higher today almost looks normal taking into consideration the global reaction to Trump becoming President-elect. However, the USD/INR likely has a couple of days coming where volatility will remain strong.

• Financial institutions will have to decide if the USD/INR currency pair has been too overbought, and then try to factor this notion into the belief the U.S Fed may sound dovish tomorrow.
• Speculators who do not have deep pockets may want to monitor trading and sit out trading until Friday.
• If a USD/INR trader is actively pursuing the currency pair, the upwards momentum should not be a shock today, but more volatility should be expected along with choppiness.
• Reversals lower over the next day and a half may be seen and traders need to have strong risk management working in the USD/INR.

USD/INR Short Term Outlook:

Current Resistance: 84.2360

Current Support: 84.1990

High Target: 84.2600

Low Target: 84.1710

EURUSD Chart by TradingView

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