USDINR Forecast




Friday, 5 October 2012
USDINR Daily Chart
USDINR - Daily
The USDINR charts have been in a bearish trend since early September. With the Rupee gaining strength over time, the charts have moved into the L3 - L4 zone and is set to drop further. Monthly Camarilla levels for the pair show that the chart has already made a close below 51.9063 which is the L3 level for October. This sets an ideal situation for an L3 - L4 run. However, Gann studies for USDINR suggest a different story. After a long time, here comes a reversal date on the 4th of October, which is allowed an error of a day on either side. A positive reversal is on the cards for the currency pair, which once confirmed, could shoot up the charts to higher levels. The Camarilla levels will try to prevent this change though. As far as a trading strategy is concerned, it would be wise to keep short positions open until a confirmation of the Gann reversal is available. Unless the reversal is assured by the chart movements, the bearish trend remains established and open short positions could bring in bigger profits. In case the reversal is confirmed, long positions can be opened, preferable after the pair closes above the L3 level for the month. The long position could be a weak mover, since the pair will remain in the L3 - H3 window which is a zone of weakness.

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