USDINR is on the verge of testing the All-time high. Momentum had geared up in the last couple of trading sessions. Previous All-time high 74.6875 is done long back around Nov 11, 2018. The current momentum is thus far driven by two factors
1)FED 50 bps rate cut
2)Corona Virus Fears
USDINR March futures cleared the older gap zone around 73.65 as explained in the previous article . However, Thursday session ended up with late recovery from the lows and likely odds that late sentiment could get spilled into the Friday sentiment as well.
Still, short term remains up and momentum drivers are the major driving force and the possible reason for this vertical spike. Further acceleration of momentum could drive USDINR towards All time high in the next couple of days (which the street is already anticipating since last week).
USDINR – Market Profile References
USDINR on Thursday session managed to reject the lows below Wednesday’s pullback low reference which is a likely indication that re-entry of momentum drivers is likely to step in. Still no emotions are reflected from the trading participants usually a sign of continuation.
The last couple of days price action reveals that crowded short term activity is competing at different zones which has some more odds of continuation towards 73.9 and 74.5 levels in a very short term.