USDINR:- Downward sloping trend channel on dailies

USDINR:- Downward sloping trend channel on dailies

Ankit Nagpal
15 Apr 2019   5:46 PM

USDINR:- A look at the daily chart is showing that USDINR is trading in between the range of a downward sloping trend channel – lower peaks with lower bottoms are clearly visible in the below chart. The pair bounced back after finding its support (might be for a correction) at lower trend-line of the channel at 68.38 on 03 April 2019. Immediate resistance of upper trend-line and 50 day simple moving average and is coming approximately at 70.10 mark. The prices are trading below its 200 day simple moving average (at 70.64), which itself suggesting that the trend is still down – along with that a death crossover between 50 and 200 day is justifying the above statement - 50 day average crossing below the 200 day average is indicating a downtrend. Applied momentum indicators -  Relative strength Index (14) is at 49, while the reading of Stochastic Slow is captured at 56, both are neutral - but likely to approach their overbought territories.

Conclusion:- A step towards 70.10 mark is quite possible or a valid breach above 70.11 will open the doors for 70.64 in the next move. The view will be negated for downtrend channel if the daily price close occurs above the 200 day simple moving average which is at 70.64.