USDINR (CMP: 62.3) - pair is showing bullish outlook for short to
medium term perspective.
The price is forming higher top
higher bottom set-up on weekly chart which indicates that the odds are in favor
of USD. Last two weeks the pair has formed Doji/Hammer pattern which is a
significant bullish reversal pattern. This pattern holds the USD and adding the
strength to the USD for short term.
From the median line support of
$60.5 the pair has turned to bullish territory and started retracing the last
falling leg. The golden retracement levels of 38.2%, 50% and 61.8% which are
placed at $63.90 – $64.85 – $65.81 levels respectively. The pair has already
tested the 38.2% levels of the last falling leg. Unless violation of $60.5
levels, the bullish bias could continue toward 50% & 61.8% retracement
levels of last falling leg.
The price structure is looks like
a Head & shoulder pattern on weekly chart, now the pair is in the right
shoulder of the pattern. The neckline is placed at $60.5 level. But the confirmation comes only fall below
$60.5 level.
The pair is trading above 21 Week
EMA which is placed at $61.39 levels. In
addition the weekly RSI is holds the key trend line along with the head and
shoulder pattern’s neckline on the price.
Conclusion: The pair is heading toward $63.90 – $64.85 – $65.81
levels for the cluster support level of $60.5. Investors can use the dips as a
buying opportunity.
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