EUR/INR Analysis
Morning Update: Will the EUR/INR pair recover to 92.50 or continue to slide to 85.00 ?
As we mentioned in our previous research, the EUR/INR has fallen dramatically from 92.50 to 89.50, and it now appears vulnerable. We'll look at charts to estimate where the EUR/INR will go in the future.
- The EUR/INR has fallen from 92.50 to 89.50 in the last few days.
- The pattern suggests that sellers may apply downward pressure in the future, lowering the price to the 85.00 - 87.00 range.
- The Relative Strength Index (RSI) does not currently indicate strong demand for EUR/INR.
Please see the accompanying chart to better understand the EUR/INR pricing pattern. The EUR/INR pair has dropped from 92.50 to 89.50, and it is now weak. This week has demonstrated the euro's vulnerability against the dollar. Because of the massive supply, the EUR/INR has been steadily declining, and we expect this trend to continue in the coming days.
The accompanying graph depicts how the EUR/INR climbed rapidly from 89.00-89.50 to about 92.00-92.50. Supply was noticed at 92.50, and the EUR/INR quickly reversed to find support near 89.50. Despite negative divergence on daily charts, the Relative Strength Index does not appear to be anticipating much additional strength. This suggests that there is little demand for the price, and dealers may reduce it at any time in the coming days.
Please see the chart below, which shows negative divergence in the RSI for the EUR/INR pair. We will go into more depth right away.
Please see the chart above, which shows that the RSI made lower lows, indicating a bearish divergence, despite the EUR/INR price increasing 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 increase, there appears to be an opportunity to sell, therefore EUR/INR could be traded more regularly. The lowest values predicted over the coming days are 85.00 and 87.00.
Because the upward charts show strong resistance in the 92.00-92.50 range with negative RSI divergence, while the downside is open for the 85.00-87.00 range, a EUR/INR short sell bet could be successful.
Please review the EUR/INR support and resistance levels. Every level is represented by a spot chart.
|
EURINR |
Support |
Resistance |
|
Level 1 |
87.00 |
92.00 |
|
Level 2 |
85.00 |
92.50 |