EUR/INR Analysis and Path Ahead
Morning Update: Will the EUR/INR pair revert or bounce from its current trading range of 91 ?
As we noted in our earlier analysis, EUR/INR dropped nicely from the 92.50 to 90.50 region and now appears weak. We will go over charts and talk about the future direction of the EUR/INR.
- Over the course of the previous week, the EUR/INR fell from the 92.50 to 90.50 zone.
- According to the chart, there might be a downward pressure and sellers might drive the price down to the 89.00 - 89.50 zone in the future.
- The Relative Strength Index (RSI) does not indicate a robust demand scenario that could propel the EUR/INR higher at this time.
Please carefully review the chart above to comprehend the EUR/INR price behavior. After dropping from the 92.50 to 90.50 zone and circling the 90.50–91.00 zone for the past four days, EUR/INR is now sideways. Monday saw a small increase and further rise in the EUR/INR. This week, the strength of the euro relative to the dollar has been seen.
As seen in the above chart, EUR/INR had a good bounce out of the 87 zone and reached 92 levels. There has been supply in the vicinity of 92.50, and the EUR/INR rapidly reversed to find support near 90.50 levels. The Relative Strength Index, however, does not appear to be indicating much additional strength as it is displaying negative divergence on daily charts, indicating that there is not a lot of demand for the price and sellers may drive the price lower at any time in the upcoming days.
Please see the following chart, which shows the EUR/INR pair with RSI negative divergence. We'll talk about it in more depth now.
Please see the preceding chart, which demonstrates that despite a slight gain in the price of EUR/INR, the RSI produced lower lows, indicating a negative divergence.
RSI Divergence : An RSI divergence occurs when price moves against the RSI. Put differently, a change in momentum can show up on a chart before a corresponding change in price. A bearish divergence occurs when the RSI reading becomes overbought and is followed by a lower high that exhibits higher highs in the price.
More selling of EUR/INR could occur, and every increase appears to present a chance to sell. The upcoming days will see levels of 89.50 and 89.00 as the bottom.
The EUR/INR short sell trade will benefit from a positive risk-reward ratio because the upside charts indicate strong resistance in the 92.00–92.50 zone with negative divergence on the RSI, while the downside is open for the 89.00–89.50 zone, respectively.
Please check the support and resistance level of EUR/INR. All levels are in spot chart :
|
EURINR |
Support |
Resistance |
|
Level 1 |
89.50 |
92.00 |
|
Level 2 |
89.00 |
92.50 |