USDINR Analysis
Afternoon Session: UDINR, Head and Shoulder pattern observed in 4hr Chart, a break needed above 83.12 level, will it fly high?
Highlights:
- The dollar index rises to over a one-month high.
- US Federal Reserve cautious about cutting rates too soon.
- The geopolitical situation in West Asia remains volatile.
Overview:
The USDINR futures market started with a gap-up opening at 82.95, setting the tone for a session characterized by a remarkable bounce from lower levels. The charts revealed a series of long green candles, reflecting a significant upward momentum throughout the trading session. Despite the bullish sentiment, it's essential to note that the closing price of USDINR remained below the 20-days moving average, positioned at the 83.22 level. This provides an interesting juxtaposition, raising questions about the sustainability of the upward movement. For traders seeking to capitalize on potential opportunities, a suggested strategy is to initiate a buy position around 82.12. However, it's crucial to manage risk effectively by setting a stop loss at 83.02. The projected targets for this trade are 83.20 and 83.26, aligning with the anticipated range of fluctuations.
Support and Resistance Levels:
