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
