Here’s a post on a few currencies of the world as we know them. The dollar, the Euro and of course the Rupee.
The EURINR chart is range bound. having formed the triple top formation on the chart, with resistance at 73, the EURINR has begun to dip again. While looking at the bigger picture and a parallel analysis of the USDINR and USDEUR we see that Rupee seems to be getting stronger against Dollar, while Euro is giving signal of getting weaker against Dollar in the coming days.
Hence we can assum with evidence that Rupee will strengthen against the Euro.
If this happens then there will not be a breakout on the eurinr chart beyond the range of 73 , as also indicated by the momentum indicator, RSI, which has reached the zone of 70 and failed to breached it, which is a very bearish sign.
so we have a three fold hold on these currency pairs name usdeur, eurinr and usdinr.
The individual Chart analysis is as follows.
Currently undergoing a choppy movement between the range of 73.0 and 68.50, there is evidence on the charts to believe that the INR will strengthen against the EUR and pave way for the support zone of 68.50. whether it completes the journey to tthe support level or not is a matter of time, but individual analysis tells us that there will not be a breakout above the zone of 73.0 atleast in this movement.
Moreover the RSI has given a top of 69.0474, just shy of 70, a bad signal.
What we see in the USDEUR chart is called the measuring move, wherein a sharp movement in one directed is interjected by a correction in the opoosite direction somewhere in the middle of the entire move. So here, the red downfall from 0.920 to 0.892 was just half the movement and soon we may witness a fall of the same magnitude – heading for the support blue line around 0.880.
The last candle on the chart is called a doji. Due to owning the EOD verison, I am unable to present you with the updated chart here which would contains today’s movement also, which has given a lower closing than the last candle in this chart which is called a dragonfly DOJI, an indicator of indecision and probable weakness when appearing at tops. This indicates that the Rupee has good probability of owning up strength against the Dollar.
Again RSI in the chart is pretty overbought, not as insistent as in the USDEUR chart, but still, it does indicate chances of a correction here.
Please feel free to comment on the analysis.
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