USDINR Elliott Wave Analysis

USDINR has been moving in a rising channel, forming a higher highs and higher lows which is a positive formation. Currently it is quoting near the support of the channel and can move up to test its previous highs. The momentum indicator RSI remains above the level of 50 which is a healthy sign. As far as the channel is intact the bias remains positive.

As per wave theory, the entire up move from May 2014 till date is been corrective in nature. At present it has completed double corrective pattern (a-b-c-x-a-b-c). The probability is higher as the double corrective pattern can be converted to triple corrective pattern (a-b-c-x-a-b-c-x-a-b-c). If it does then the pair can move up till 62.00 levels or even higher till 62.15. However, if the channel is broken then it has completed double correction pattern and will start the next leg on downside which can test at least till 50% retracement of the previous up move from 58.20 to 62.00 levels which comes to 60.11 levels.

In short, as far as prices persist in the rising channel the bias is firmly positive which can push prices higher till 62.00-62.15 levels. Failure to protect the level of 61.00 levels will accelerate selling pressure dragging prices lower till 60.11.