On analyzing the chart of USDINR , its pattern suggest that the dollar is trying to make a Shoulder and if it reverse from the shoulder top and break the Neckline as seen in the chart, we may see big drown down in this towards the levels of 67.80. Traders are advised to trade cautiously in the coming days & Sell on rise near right shoulder around 71.50 levels for sound risk to reward with SL of recent high.
Trade active:
On revisiting the chart of USDINR, its looking fabulous that it has given a dead cat bounce after breaching the support with good volumes and traders are also having good shorting opportunity again as the Weekly resistance level stood near 71 levels whereas the Index having closed higher today with very low volumes and not closed above the resistance level of 70.60 . On checking the option data, its clearly showing bearishness and having decent CE writing seen at 71, 70.75 & 70.50 levels
Trade active:
USDINR is in the formation of "Inverse cup and handle" and forming the handle formation now. Its trading with in the parallel channel after taking support @ 71 levels. Strong resistance seen near 71.55 levels which is moved upside with today's move and yet the levels of 71 acting as strong support. Breaching any side big movements can be seen.