Rajandran R Telecom Engineer turned Full-time Derivative Trader. Mostly Trading Nifty, Banknifty, USDINR and High Liquid Stock Derivatives. Trading the Markets Since 2006 onwards. Using Market Profile and Orderflow for more than a decade. Designed and published 100+ open source trading systems on various trading tools. Strongly believe that market understanding and robust trading frameworks are the key to the trading success. Writing about Markets, Trading System Design, Market Sentiment, Trading Softwares & Trading Nuances since 2007 onwards. Author of Marketcalls.in)

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

[wp_ad_camp_5]

 
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 Telecom Engineer turned Full-time Derivative Trader. Mostly Trading Nifty, Banknifty, USDINR and High Liquid Stock Derivatives. Trading the Markets Since 2006 onwards. Using Market Profile and Orderflow for more than a decade. Designed and published 100+ open source trading systems on various trading tools. Strongly believe that market understanding and robust trading frameworks are the key to the trading success. Writing about Markets, Trading System Design, Market Sentiment, Trading Softwares & Trading Nuances since 2007 onwards. Author of Marketcalls.in)

Technical Analysis: USDINR Trading Range Breakout and RBI’s Monetary…

Since October 2022, the USDINR currency pair has exhibited a notable compression in its trading range, with a significant resistance level observed around 83....
Rajandran R
1 min read

Anatomy of the Forex Market – Infographic

The foreign exchange (forex) market is a global market for buying and selling currencies. It is the largest financial market in the world, with...
Rajandran R
3 min read

USDJPY – Made a Top Formation

Finally, the USDJPY strengthening came to an end from a short-term perspective. Last Friday USJPY rallied to 151.94 levels surging past the August 1990 high...
Rajandran R
33 sec read

Leave a Reply

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