Feb 13 2019

EURINR – Trading at its support level

We see previous scenario of the pair is trading in uptrend (making higher lows) and it is clearly visible that the price action is reacting strongly at the trend line support (can be seen on the lower trend line) from first week of November to present. Within a period of four months, the pair took support at this trend line four times. It traded near this trend line yesterday (13.2.2019) and has not broken this support yet. The pair is likely to continue the trend (Uptrend) with the trend line as the support. Analyzing the recent move, price of the pair has drastically fallen down by more than INR 2.50 from 82.25 on 2-Feb-19 to around 79.50 (12-Feb-19) and hasn’t taken any correction in between.

According to Momentum Indicators, Stochastic slow is at 22 and Relative Strength Index of 14 Period is at 35. Both indicators are near to their oversold territory.

Forecast- With support of bullishness in price actions, pair likely to hit 81.00 and any close below 79.80 will negate the above view.