INRUSD declines to lowest close since April 27th
Indian Rupee/US Dollar (INRUSD) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, INRUSD finished the week -0.3% lower at 0.013251 after losing 71 pips (-0.53%) today. Today's close at 0.013251 marks the lowest recorded closing price since April 27th. The bears were in full control today, moving the market lower throughout the whole session. Closing below Thursday's low at 0.013288, INR/USD confirmed its breakout through the prior session low after trading up to 52 pips below it intraday.
Daily Candlestick Chart (INRUSD as at May 22, 2020):
Friday's trading range has been 87 pips (0.65%), that's below the last trading month's daily average range of 103 pips. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for INRUSD.
One bearish candlestick pattern matches today's price action, the Black Candle.
The forex pair closed back below the 50-day moving average at 0.013269 for the first time since May 11th. When this moving average was crossed below the last time on May 11th, INRUSD actually gained 0.96% on the following trading day.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Buying could speed up should prices move above the nearby swing high at 0.013357 where further buy stops might get triggered.
Among the 10 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 311 times, INRUSD closed higher 55.95% 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 two trading days, showing a win rate of 57.56% with an average market move of 0.04%.