EUR/INR Analysis
Morning Update: After touching 92.50 EUR/INR dropped, Will it continue to fall or get higher?
After reaching the solid resistance zone of 92.00 that we covered in our previous analysis, EUR/INR declined sharply. The double top and strong resistance zone, along with the RSI bearish divergence, provided the ideal conditions for EUR/INR to break lower.
- After rising from the 88.00 to 92.00 region, the EUR/INR faced resistance at 92.00–92.50.
- The chart indicates that further declines in EUR/INR are possible because strong supply is pushing the price closer to the 89.00 zone.
- The relative strength index (RSI) suggests that since sellers are more powerful than buyers, there can be additional downside.
Please refer to the chart above to observe how the EUR/INR fell off a steep cliff after encountering significant resistance in the 92.00–92.50 region. As we mentioned in our previous analysis, the EUR/INR is encountering resistance and double topped in the 92.00–92.50 zone, indicating a greater likelihood of a decline after the pair reaches the resistance zone. The double top occurred between 92.00 and 92.50, and the RSI was displaying negative divergence.
Now, kindly refer to the chart below, where we will talk about EUR/INR using RSI:
As seen in the accompanying chart, EUR/INR positively rebounded from the 89.00 zone and reached 92.00 levels at that point. Supply has been observed in the 92.00–92.50 range, and while price has reached higher highs, the RSI has reached lower lows, indicating RSI negative divergence on the daily chart.
RSI Divergence : When price swings against the RSI, it is called an RSI divergence. In other words, a shift in momentum may appear on a chart ahead of a corresponding change in price. When an overbought reading on the RSI is followed by a lower high that shows up with higher highs on the price, this is known as a bearish divergence.
Putting all the pieces together, we can also state that going forward, EUR/INR may fall into the 89.00 zone. At this point EUR/INR facing supply and price may decrease much more. RSI bearish divergence and a double top in the 92.00–92.50 zone suggest that EUR/INR may continue to break and might drop to the next support zone, which is located at 89.00 levels.
Please check the support and resistance level of EUR/INR on the daily chart. All levels are in spot chart :
|
EUR/INR |
Support |
Resistance |
|
Level 1 |
89.50 |
92.00 |
|
Level 2 |
89.00 |
92.50 |