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.
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.
- Save upto Rs.2.67 lakh with Pradhan Mantri Awas Yojana ...Know more
- Now Save Rs.3150 on your Demat Account ...Click here
- Now get IIFL Personal Loan in just 8* hours...APPLY NOW!
- Get the most detailed result analysis on the web - Real Fast!
- Actionable & Award-Winning Research on 500 Listed Indian Companies.