USDINR continues to move sideways...

BOTTOM LINE: USDINR continues to move in sideways direction…

USDINR:

USDINR is moving in a range of 54.80-54.20 which clearly indicates that the currency pair is moving in a sideways direction. To get a clear direction USDINR need to obtain a confirmation which is possible by breaking the above mentioned range.

After forming a top around 57, USDINR is moving in a corrective fashion. However, if 55.10 is taken out on the upside the sentiments will change and fresh longs will not be ruled out.

As per wave perspective, after completing wave v, the currency pair started moving in a downtrend and completed wave b around 55.10. Currently prices are moving in the form of wave c. Any move above 55.10 will complete wave c on downside and next leg on the upside will start.

A sideways movement in USDINR has also impacted NIFTY, as both are inversely related hardly any movement is been seen in last week.

In short, any move below 54.20 will drag USDINR to 53.65-53.50 and a move above 54.80 will push prices to 55.10-55.30 over short term.

GBPINR

After making a top around 89.50, GBPINR failed to move above it and started shedding gains. The currency pair failed to move above it thrice and fell steeply after touching it. The currency pair is moving down by forming lower high lower low which is a negative sign for this pair.

GBPINR is moving in sync with USDINR as a sideways movement is been witnessed within the range of 88.50-87. However, we remain cautious if 88.50 is been crossed, which will give a clear direction to it. 

GBPINR has also taken a temporary support near 38.2% of the retracement of the previous upmove (89.50-82). If this level breaks, the immediate support for this pair would be 86.80 which is the support of wave iv of impulsive move.

In short, GBPINR still awaits for a clear direction which will only be possible by breaking the extremes. Currency traders need to trade cautiously as our bias is still neutral for this pair.

EURINR:

EURINR has moved in positive direction by closing above the previous high of the day for 2 consecutive days. The currency pair is positively biased as it has broken the falling channel pattern. EURINR has also filled the gap which was placed at 70.80 which will now act as a support.

EURINR can reach upto 71.80-72 levels in coming trading sessions as lot of buying is been seen in this counter.

As per wave perspective, EURINR is currently moving in wave c and if 72 is crossed wave c on the downside will get completed and next leg will start on upside.

In short, our bias for EURINR is positive as the currency pair has closed above the previous high for 2 days. The immediate resistance for this pair is 71.80 and the support is 70.80.

JPYINR:

JPYINR is moving in a downward sloping channel and it has formed lower high lower low pattern. On the early hours of trade on Thrusday JPYINR opened with gap down and made a low of 64.80 as it has breached 65.50 which was its previous low.

The possibility is high that 64.80 could be breached in coming sessions and new  low of 64.50 would be made. Another possible scenario would be a positive divergence in RSI would be formed and it wuold start moving in a positive direction, for that a confirmation is required as it has to move above 66.50 level. 

JPYINR is hovering near the resistance of downward sloping channel and can move down from current levels. Overall scenario still looks negative and can move down to 64.50 levels.

In short, as far as JPYINR is moving in a downward sloping channel our bias for JPYINR is negative. However we are cautious if it crosses 66.50.

By - Megh Mody

Email- meghmody@yahoo.com

Mobile no.- +919167764085