Potential signal:
I am a buyer of this pair, but I would like to see a short-term pullback to get involved “on the cheap.” I would be a buyer at 83.25, with a stop loss at 83. I would be aiming for 83.70 above.
- The US dollar rallied significantly during the course of the trading session on Wednesday, as we have broken back above the 50-Day moving average EMA.
- This of course is a bullish sign and it’s probably worth noting that recently we have bounced from the 200-Day EMA.
- The 200-Day EMA is an indicator that a lot of people pay close attention to, so it does make a certain amount of sense that we would see it play out here as support.
Top Forex Brokers
Looking at the chart, it’s obvious that we have seen a lot of bullish pressure in the last couple of days, and I think that will continue to be a major factor going forward. If we can break above the ₹83.50 level, then it’s possible that we could see this market really start to take off, perhaps trying to get to the ₹83.75 level. Ultimately, it looks like we could be a little extended in the short-term, but I think given enough time we could see quite a bit of volatility and perhaps even a bit of a pullback, but ultimately, I do think that the US dollar continues to strengthen against the rupee over the longer term.
Ultimately, this is a market that I think will continue to be very erratic, due to the fact that we have seen a shift toward the US dollar of the last couple of days, and of course the Indian rupee is an emerging market currency, so it does make quite a bit of sense that we would see a little bit of noise as traders try to sort out whether or not they are willing to take a lot of risk.
Technical Analysis
Breaking above the 50-Day EMA of course makes a certain amount of sense, and if we can break above the top of the candlestick then I think we continue to see a lot of bullish pressure. Short-term pullbacks will continue to be crucial, and I think that the ₹83.25 level will be a level that a lot of people will have to pay close attention to. I believe that this continues to be a “buy on the dips” type of scenario.
Ready to trade our Forex daily analysis and predictions? Here are the best forex trading platform in India to choose from.