Rajandran R Founder of Marketcalls and Co-Founder Algomojo. Full-Time Derivative Trader. Expert in Designing Trading Systems (Amibroker, Ninjatrader, Metatrader, Python, Pinescript). Trading the markets since 2006. Mentoring Traders on Trading System Designing, Market Profile, Orderflow and Trade Automation.

Bearish Trade Setup in USDINR Daily Charts

35 sec read

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.

USDINR Daily Charts
USDINR Pin Bar

 
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.

10 Year T-Bond Daily Chart
10 Year T Bonds

Rajandran R Founder of Marketcalls and Co-Founder Algomojo. Full-Time Derivative Trader. Expert in Designing Trading Systems (Amibroker, Ninjatrader, Metatrader, Python, Pinescript). Trading the markets since 2006. Mentoring Traders on Trading System Designing, Market Profile, Orderflow and Trade Automation.

USDINR Positional Pullback Trade Setup

USDINR enters into the stage of positional longs on 4th May and till to date continues its sideways journey for the last 4 trading...
Rajandran R
1 min read

Difference Between Binary Options vs Regular Vanilla Options and…

A Binary Option is a financial instrument based on a simple yes or no question where the payoff is a fixed amount or nothing...
Aniket Kale
3 min read

Things you need to know about China’s Digital Yuan

China has begun trial of its new digital currency “e-RMB”, in four of its major cities. A full-fledged launch could be expected in May...
Aniket Kale
1 min read

Leave a Reply

Get Notifications, Alerts on Market Updates, Trading Tools, Automation & More