EUR/INR Analysis
Morning Update: Will the EUR/INR pair recover to 92.50 or continue to fall towards 85.00 ?
The EUR/INR plunged spectacularly from 92.50 to 89.50, as we mentioned in our previous research, and it now appears vulnerable. We'll look at charts and forecast where the EUR/INR is headed in the future.
- The EUR/INR has dropped from 92.50 to 89.50 over the last few days.
- The pattern indicates that sellers may apply downward pressure in the future, bringing the price down to the 85.00 - 87.00 zone.
- The Relative Strength Index (RSI) does not currently reflect a high demand for EUR/INR.
Please refer to the accompanying chart to better understand the EUR/INR pricing pattern. The EUR/INR pair has fallen from 92.50 to 89.50, and it is now weak. This week has highlighted the euro's weakness against the dollar. Because of the enormous supply, the EUR/INR has been gradually falling, and we expect this trend to continue in the coming days.
The accompanying figure shows how the EUR/INR increased quickly from 89.00-89.50 to roughly 92.00-92.50. Supply was noted at 92.50, and the EUR/INR soon reversed to find support near 89.50. Despite negative divergence on daily charts, the Relative Strength Index does not appear to be forecasting much further strength. This indicates that there is minimal demand for the price, and dealers may lower it at any time in the next few days.
Please examine the chart below, which shows negative divergence in the RSI for the EUR/INR pair. We'll go into further detail right immediately.
Please notice the above chart, which shows that the RSI made lower lows, signaling a bearish divergence, despite the EUR/INR price rising somewhat.
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 surge, there looks to be an opportunity to sell, therefore EUR/INR may be traded more frequently. The lowest readings expected in the coming days are 85.00 and 87.00.
Because the upward charts show strong resistance in the 92.00-92.50 zone with negative RSI divergence, and the downside is open for the 85.00-87.00 zone, a EUR/INR short sell trade could be profitable.
Please refer to the EUR/INR support and resistance levels. Each level is represented by a spot chart.
|
EURINR |
Support |
Resistance |
|
Level 1 |
87.00 |
92.00 |
|
Level 2 |
85.00 |
92.50 |