EUR/INR Analysis
Morning Update: Will the EUR/INR pair stay in the 90.50 zone or will it rise again?
The EUR/INR declined beautifully from the 92.50 to 90.50 zone, as we mentioned in our earlier analysis, and it currently seems fragile. We will review charts and discuss where the EUR/INR is headed in the future.
- The EUR/INR dropped from the 92.50 to 90.50 zone during the course of the preceding week.
- The trend indicates that there may be a downward pressure in the future, pushing the price down to the 89.00 - 89.50 zone by sellers.
- Right now, the Relative Strength Index (RSI) does not point to a strong demand scenario that would raise the EUR/INR.
Please review the preceding chart to comprehend the pricing behavior of EUR/INR. The EUR/INR pair moved from the 92.50 to 90.50 zone, and is now weak. This week has shown the euro's weakness versus the dollar. Because of the high supply, EUR/INR is steadily declining, and we anticipate that this trend may continue in the days to come.
The accompanying chart illustrates how the EUR/INR had a strong up move from the 89 zone and reached levels of 92.00-92.50 zone. Supply has been seen around 92.50, and the EUR/INR quickly turned around to find support close to 90.50 levels. Though it is showing negative divergence on daily charts, the Relative Strength Index does not seem to be indicating much more strength. This suggests that there is not much demand for the price and that sellers may drive the price lower at any point in the coming days.
Please refer to the following chart, which displays negative divergence in the RSI for the EUR/INR pair. We'll go into greater detail about it immediately.
Please refer to the previous chart, which shows that the RSI made lower lows, suggesting a bearish divergence, even if the price of EUR/INR slightly increased.
RSI Divergence : An RSI divergence happens when price moves against the RSI. In other words, a shift in momentum may manifest itself on a chart ahead of a matching shift in price. When the RSI reading gets overbought and is followed by a lower high that shows higher highs in the price, this is known as a bearish divergence.
There seems to be an opportunity to sell with every uptick, thus there may be more selling of EUR/INR. The lowest points in the following days will be at 89.50 and 89.00.
Because the upside charts show 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, the EUR/INR short sell trade will benefit from a good risk-reward ratio.
Please review the EUR/INR support and resistance levels. Every level is shown in a spot chart.
|
EURINR |
Support |
Resistance |
|
Level 1 |
89.50 |
92.00 |
|
Level 2 |
89.00 |
92.50 |