USD/INR Price Analysis: Positive Divergence bolsters a bullish reversal, 83.00 eyed


  • The greenback bulls are facing barricades at the downward sloping trendline placed from 83.30.
  • A Positive Divergence signals a resumption in the dominant trend after a corrective move.
  • The DXY is struggling to sustain above 110.50 amid mixed market sentiment.

The USD/INR pair is struggling to cross the immediate hurdle of 82.40 in the Tokyo session. However, the US dollar index (DXY) has witnessed a minor correction after failing to sustain above the critical resistance of 110.50. Meanwhile, risk sentiment remains quiet as S&P500 futures are holding their morning losses.

USD/INR daily chart

On a daily scale, the major has displayed a Positive Divergence, which indicates a resumption of an uptrend after a corrective move. A bullish positive divergence was recorded after the asset made a higher low at around 81.90 while the momentum oscillator Relative Strength Index (RSI) (14) made a lower low. This dictates an oversold situation in an uptrend which is considered a bargain buy for the market participants.

The 10- and 20-period Exponential Moving Averages (EMAs) at 82.47 and 82.25 respectively are aiming higher, which adds to the upside filters.

USD/INR hourly chart

On an hourly scale, the major is facing barricades around the downward-sloping trendline placed from October 20 high at 83.30.

The 20-and-50-period EMAs have delivered a bull cross at 82.34, which indicates more upside ahead.

A decisive move above Thursday’s high at 82.55 will trigger the Positive Divergence and eventually will activate the greenback bulls for an upside move towards October 10 high and all-time high at 82.82 and 83.30 respectively.

Alternatively, the Positive Divergence formation could negate if the asset drops below Thursday’s low at 81.90. This will drag the asset towards October 6 low at 81.51, followed by September 30 low at 81.16.

USD/INR

Overview
Today last price 82.3133
Today Daily Change -0.1422
Today Daily Change % -0.17
Today daily open 82.4555
 
Trends
Daily SMA20 82.2696
Daily SMA50 80.964
Daily SMA100 80.0385
Daily SMA200 78.1213
 
Levels
Previous Daily High 82.7896
Previous Daily Low 81.9284
Previous Weekly High 83.4276
Previous Weekly Low 82.0075
Previous Monthly High 82.2268
Previous Monthly Low 79.0175
Daily Fibonacci 38.2% 82.4606
Daily Fibonacci 61.8% 82.2574
Daily Pivot Point S1 81.9928
Daily Pivot Point S2 81.5301
Daily Pivot Point S3 81.1317
Daily Pivot Point R1 82.8539
Daily Pivot Point R2 83.2523
Daily Pivot Point R3 83.715

 

 

 

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