USDINR Spot on the Daily charts had achieved the peak 65.56 per Dollar on 22nd August. The 22nd August candle formation on the EOD charts reflects a clear rejection at higher price level followed by a large directional move opposite the direction of the rejection. Thus forming a bearish rejection pin bar. i,e one that rejects higher prices and thus tips us off to take a short position or sell the USDINR pair in medium term. This setup will invalidated if market closes above 65.56 on EOD basis.
Moreover the falling stochastic momentum indicates the trend get weaker than before. Also the 10 Year bond yields are falling from the peak from 9.23 levels. 10 year Govt Bond yields achieves it peak on 19th August. Decline in Bond prices normally attract FII inflows into the market and thus could boost INR strengthening against dollar. Probably increase in Interest rates could even attract more Foreign and NRI deposit into the country.