INRUSD finds buyers again around 0.013578
Indian Rupee/US Dollar (INRUSD) Technical Analysis Report for Sep 21, 2020 | by Techniquant Editorial Team
INRUSD ended Monday at 0.013602 gaining 9 pips (0.07%). Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (INRUSD as at Sep 21, 2020):
Monday's trading range has been 74 pips (0.54%), that's below the last trading month's daily average range of 94 pips. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for INRUSD. Prices continued to consolidate within a tight trading range between 0.013558 and 0.013681 where it has been caught now for the whole last trading week.
One bullish candlestick pattern matches today's price action, the Bullish Spinning Top.
Prices are trading close to the key technical support level at 0.013544 (S1). After having been unable to move lower than 0.013579 in the previous session, the currency found buyers again around the same price level today at 0.013578. The last time this happened on September 17th, INRUSD actually lost -0.04% on the following trading day.
Though the pair is currently in a short-term downtrend, this might just be a correction, as both the medium and long-term trends are still bullish.
Buying could speed up should prices move above the close-by swing high at 0.013681 where further buy stops might get activated. Selling could accelerate should prices move below the nearby swing low at 0.013558 where further sell stops might get triggered. As prices are trading close to September's low at 0.013527, downside momentum could speed up should INR/USD mark new lows for the month.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing Low" stand out. While it is usually interpreted as neutral, it has actually shown to be bullish for INR/USD. Out of 874 times, INRUSD closed higher 52.40% of the time on the next trading day after the market condition occurred.