Indian Rupee Inverted Head & Shoulder Pattern

Sustain Above 63.9; Then Expected Target Range:  68.80-69.46 Against US Dollar

The above chart indicates that Indian rupee is forming “Inverse Head & Shoulders Pattern.” After the rise from Point A (51.36/$), the rupee reached higher to Point B (68.80/$). This pattern formation has been seen with the retracement at Point C (58.34/$), which is near to the 61.8% retracement of Point A-Point B.

The chart shows that Left shoulder pattern started from the high of 68.80 and tested the lower level of 60.84, which was a sharp correction but it bounced back again to test the level of 63.90. The rupee drifted lower after testing the resistance at 63.90 and touched the low of 58.34. It again re-tested the Neckline level at 63.90, forming Head of chart pattern. The Right Shoulder tested the lower level of 61.30, before reverting and is currently trading at 63.64 near the Neckline resistance of 63.9. If it breaks out then the further uptrend will be confirmed.

Calculating the higher targets, which is the difference from the Head (58.34) to the higher resistance Neckline (63.90), is 5.56 points. The Neckline breakout is expected at 63.90 and adding the difference (5.56), the breakout comes to 69.46 as an immediate target. The previous top of 68.80 is also considered as the target as the start of the Inverted Head and Shoulder pattern.

Sustain Above 63.9; Then Expected Target Range:  68.80-69.46 Against US Dollar