USDINR may test 55.88-57.32: Sharekhan

Sharekhan has come out with its report on USDINR, GBPINR and EUR INR, The research firm says the USDINR is expected to take off once again. Overall, the USDINR can test the previous high and the all-time high that is 55.88-57.32 respectively.

USDINR: From the high of 55.88 the USD-INR has tumbled in a threewave manner. It has retraced 61.8percent of the previous rally. From there, ie from the low of 52.88, the USD-INR has started a fresh rally, which is sub-dividing into lowerdegree waves. Even the recent correction has retraced 61.8percent of the recent rise. From hereon, the USD-INR is expected to take off once again. Overall, the USD-INR can test the previous high and the all-time high, ie 55.88 and 57.32 respectively. The reversal can be placed below the recent low, ie 53.60.

GBPINR: From the lower end of the medium-term rising channel the GBP-INR had moved up towards a level where it had faced resistance multiple times in the recent past. Subsequently, the price fell significantly. It has now broken down from the medium-term rising channel and reached near a long-term rising trendline. In terms of the wave structure, the price seems to have formed an expanding ending pattern recently. Thus, it is now set for a pullback. The daily momentum indicator is showing a positive divergence. Thus, unless the level of 80.60 breaks on a closing basis the price can move up till 83.70-84.90. 

EURINR: The EUR-INR has formed a large wedge pattern. It has formed the last leg of the pattern on the upside with a mild throw-over. Near the end it had formed a distribution triangular pattern and broken out on the downside. After falling in a five-wave fashion from the triangle the price retraced 61.8percent of the fall. From there it has resumed the larger downtrend. The daily momentum indicator is in line with the price fall. The reversal can be trailed to the swing high, ie 71.71. The targets on the downside are 69.60 and 69.10.

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