Currencies at Crucial Resistances
First up, we have GBP/INR. For two years now, the Pound has been attempting to hold its ground above 97. This is now its fourth breakout attempt above 97, a breach of which could take the price to 104.
Although the price has moved sideways, the shorter-term trend has formed higher highs and higher lows and RSI has steered clear of the oversold region during its corrections. But until price confirms the breakout by breaking their recent highs, there's not much to do other than wait.
Another currency pair on our radar is JPY/INR. Now the Yen has a slightly different story to tell compared to the pound. The price has been making higher highs and higher lows over the past two years and has been consolidating tightly below 0.72 since March of this year. While the price has held its ground above 0.67, 0.72 has been a crucial hurdle that has been in place for eight years.
We continue to keep this on our radar and would be buyers of a breakout with a target near 0.84.
With this in mind, let’s also take a look at the USD/INR pair. Post the failed breakout above 74.50, the USD/INR pair has spent most of its time moving sideways. Currently placed at 73.90, the price has remained below the 200-DMA . The price is currently stuck in a range between 74.50 and 72.90 and the flattening 200-DMA also suggests a continued sideways movement.
Despite movement in many other assets since March, there's been little action in the currency space. We discussed about the tailwinds being in place for the emerging market currencies in this post. While we are not expecting an outperformance in the Rupee given the long-term views of these charts, we prefer to wait for confirmation before taking any action.
We'll be talking about this asset class and more in next week's Members-Only Conference Call.
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Thanks for reading and please let us know if you have any questions!
Allstarcharts Team