EUR/INR Analysis
Morning Update: Will the EUR/INR pair stay around 90.50, or will it increase again ?
The EUR/INR fell brilliantly from 92.50 to 90.50, as we mentioned in our last analysis, and it now appears vulnerable. We will go over charts and analyze where the EUR/INR is headed in the future.
- The EUR/INR declined from 92.50 to 90.50 over the previous week.
- The trend suggests that sellers may exert downward pressure in the future, driving the price down to the 89.00 - 89.50 range.
- The Relative Strength Index (RSI) does not currently indicate a strong demand situation that would drive the EUR/INR higher.
Please check the accompanying graphic to understand the EUR/INR pricing pattern. The EUR/INR pair has moved from 92.50 to 90.50, and it is now weak. This week has revealed the euro's weakness against the dollar. Because of the massive supply, EUR/INR has been slowly dropping, and we expect this trend to continue in the coming days.
The accompanying chart shows how the EUR/INR rose sharply from 89 to values around 92.00-92.50. Supply was spotted at 92.50, and the EUR/INR quickly reversed to find support near 90.50 levels. Despite exhibiting negative divergence on daily charts, the Relative Strength Index does not appear to be predicting much more strength. This signals that there is little demand for the price, and sellers may drive it down at any time in the following days.
Please see the accompanying chart, which shows negative divergence in the RSI for the EUR/INR pair. We will go into deeper depth about it right away.
Please see the previous chart, which indicates that the RSI made lower lows, indicating a bearish divergence, even if the EUR/INR price gained marginally.
An RSI divergence occurs when the price moves against the RSI. In other words, a shift in momentum may appear on a chart before a corresponding shift in price. A bearish divergence occurs when the RSI reading becomes overbought and is followed by a lower high that coincides with higher highs in the price.
With each rise, there appears to be an opportunity to sell, therefore EUR/INR may be sold more frequently. The lowest values in the coming days will be 89.50 and 89.00.
Because the upward charts show strong resistance in the 92.00-92.50 zone with negative RSI divergence, while the downside is open for the 89.00-89.50 zone, the EUR/INR short sell trade will gain from a favorable risk-reward ratio.
Please check the EUR/INR support and resistance levels. Every level is represented by a spot chart.
|
EURINR |
Support |
Resistance |
|
Level 1 |
89.50 |
92.00 |
|
Level 2 |
89.00 |
92.50 |