USDINR-Weekly Views
The pair moved in a range of 81.57-82.96 during last week. The pair continues to move towards the crucial resistance at 83.10-83.30 zone. Though the pair has maintained a higher lows the top at 83.96 remains same for the past 2 weeks there by making this a Tweezer top. There are chances that there could be stronger supply coming in at close to 82.95 and that the month end flows could make the pair drift towards 83.44 support. Only a daily close below this would suggest further correction towards 81.90. Till then we may see one more week of narrow range of 83.10-82.40. While the monthly candle is still in progress, it appears that the pair may make one more attempt of the trend line resistance at 83.30. Deeper corrections cannot be expected till we see a close below 81.20. Most likely scenario would be a consolidation between 82.20 and 83.20. A close outside this range requires re-assessment of risk/direction and target.
A few more observations:
The long term trend line till at 83.10-83.30 levels holds for now and we are likely to see a consolidation between 79-82
We may not see a runaway in DXY. There can be relief rallies.
Full impact of the correction has not yet been seen in USDINR currency pair. Hence, the spikes in DXY need not necessarily impact this pair
The raising upward channel indicate the broader range of 80.10-83.10
The increased volatility and wild swings likely to continue
Seasons Greetings and Best wishes for a Happy New Year 2023
Disclaimer: The views expressed here are personal and not connected to SYFX Treasury Foundation. The views are for learning and reference purpose only.
Disclaimer
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.