INRUSD breaks below key technical support level
Indian Rupee/US Dollar (INRUSD) Technical Analysis Report for Jul 16, 2019 | by Techniquant Editorial Team
INRUSD ended Tuesday at 0.014581 losing 28 pips (-0.19%). Closing below Monday's low at 0.014587, the forex pair confirmed its breakout through the prior session low after trading up to 27 pips below it intraday.
Daily Candlestick Chart (INRUSD as at Jul 16, 2019):
Tuesday's trading range has been 64 pips (0.44%), that's slightly below the last trading month's daily average range of 71 pips. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for INRUSD.
One bullish candlestick pattern matches today's price action, the Bullish Hikkake Pattern. The last time a Bullish Hikkake Pattern showed up on July 9th, INRUSD gained 0.25% on the following trading day.
Prices broke below the key technical support level at 0.014585 (now R1), which is likely to act as resistance going forward.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
As prices are trading close to July's low at 0.014478, downside momentum might speed up should the pair mark new lows for the month.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "RSI(2) below 20" stand out. Its common bullish interpretation has been confirmed for INR/USD. Out of 305 times, INRUSD closed higher 56.07% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after three trading days, showing a win rate of 53.11% with an average market move of 0.02%.