USD/INR Technical Analysis for 27 May’13

USD/INR as on 24 May’13 – 55.8210

USD/INR as on 24 May’13 – 55.8210

From attached chart of USD/INR, some key observations;

  • In last couple of days USD/INR witnessed good momentum after breaking out from symmetrical triangle formation (not in its purest form).  With that prices also moved above its 200-day EMA. Most traders and analyst were waiting for this breakout, because prior to that prices remained in very narrow range.
  • Now, prices stand near to major swing high of 55.82 made on 26 Nov’12, after which prices remained on subdued note. Breaking out from this level will invite further attention in the pair.
  • Momentum oscillator RSI (14) is also moving higher on daily time frame, it almost reached closed to overbought territory. I think which is quite obvious after such quick rise.  Similarly, on weekly chart RSI reached near to 60-level.

After giving bullish breakout momentum is also in support of the move, which signifies positive outlook, for coming sessions. But with that overbought condition gives us a sign of caution. I sense USD/INR might go slightly higher from current level and may witness throwback, and again resume its upward journey.

Somewhere near 56.15-56.30 pair might witness resistance and turn lower towards 55-54.50 levels, and turn higher again.  This just broad observation, it might vary based upon price movement.

At Way2Profits, we always gives you unbiased view.

(Above mentioned USD/INR price may vary based upon source of data. And also price level may vary based upon analysis)

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