The pair came under continued selling pressure. While the pair attempted to scale higher of 81.88 levels, it got sold-off again. The crucial support at 81.10 also gave up. The momentum is likely to continue and any pull back towards the trend line resistance at 81.80 and 82.20 is likely to see selling pressure. Break below 80.90 can trigger further stops being hit to see the pair drift towards 80.50 and then to 80.20. Most likely scenario would be a consolidation between 80.20 and 81.50. A close outside this range requires re-assessment of risk/direction and target.
A few more observations:
- Steep trend line broken
The correlation between DXY and USDINR is not currently active and any spike in DXY need not necessarily impact this pair
though the Dollar Index-DXY is likely to hover in the familiar range of 102-105
The raising upward channel indicate the broader range of 80.10-83.10
The increased volatility and wild swings likely to continue
Disclaimer: The views expressed here are personal and not connected to SYFX Treasury Foundation. The views are for learning and reference purpose only.