USDINR breaks below key technical support level

US Dollar/Indian Rupee (USDINR) Technical Analysis Report for Feb 25, 2020 | by Techniquant Editorial Team


USDINR breaks below key technical support level
USDINR closes within previous day's range


USDINR ended Tuesday at 71.8860 losing 2060 pips (-0.29%). Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range.

Daily Candlestick Chart (USDINR as at Feb 25, 2020):

Daily technical analysis candlestick chart for US Dollar/Indian Rupee (USDINR) as at Feb 25, 2020

Tuesday's trading range has been 4520 pips (0.63%), that's far above the last trading month's daily average range of 3490 pips. Weekly volatility is also higher, being above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for USDINR.

Prices broke below the key technical support level at 71.9060 (now R1), which is likely to act as resistance going forward.

Crossing below the upper Bollinger Band, prices have lost at least some of their upward momentum in the short-term and could now be heading back down towards the mean of the Bollinger Bands at 71.4779. The last time this happened on January 8th, USDINR lost -0.43% on the following trading day.

The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.

Buying might accelerate should prices move above the close-by swing high at 72.1940 where further buy stops could get triggered. With prices trading close to this year's high at 72.2040, upside momentum might speed up should the market be able to break out to new highs for the year.

Among the three market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing High" stand out. Although it is usually interpreted as neutral, it has actually shown to be bearish for USD/INR. Out of 847 times, USDINR closed lower 52.42% of the time on the next trading day after the market condition occurred.

With five out of the seven Major FX Pairs closing lower today, the ones that stand out on the negative side are USDJPY losing -0.47% and NZDUSD closing -0.3% lower. On the flipside the best performers have been GBPUSD closing 0.58% higher and EURUSD gaining 0.25%. Looking at the other Minor FX Pairs and Crosses, the winners of the day have been GBPZAR surging 1.14% and GBPNZD closing 0.89% higher. The worst performers of the day have been ZARJPY tanking -0.96% and TRYJPY closing -0.88% lower. Read more

Market Conditions for USDINR as at Feb 25, 2020

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