Return of the Rupee!

India Infoline News Service | Mumbai |

After hitting an all time low of 69.49 in August 2013, the Indian Rupee has since then shown considerable strength against the US Dollar.

After hitting an all time low of 69.49 in August 2013, the Indian Rupee has since then shown considerable strength against the US Dollar. A sharp price correction led the pair into an intermediate consolidation phase which saw the USD/INR trading between the range of 64.20-61.


Symmetrical triangle breakdown

During this period, the pair formed a Symmetrical Triangle consolidation pattern. In the previous week, the USD/INR cracked-down from this five months continuation pattern and further strengthened against the Greenback.


This breach of the rising lower trendline confirms a breakdown from a Symmetrical Triangle Pattern suggesting the pair is poised for a potential target of 57 in medium term.


The price action over the last one month has formed a lower top lower bottom pattern which further accentuates our view.


Strategy

Given the above evidence, we expect 57 as a potential target for USD/INR in medium term. Unless the current weakness is void by sustained closing back above the apex of USD/INR which is placed at 62.30 we remain positive on the rupee against dollar.



 

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