USDINR - Trend Reversal ?

After a big fall yesterday, the Nifty took some rest, so it seems. Technically it was almost a 'doji' . It seems now North Korea is on a 'war' path over sanctions imposed on it by the West. One reason for the USDINR to rise (rupee to depreciate) was attributed to this fact.

In Investogyan's newsletter as well in earlier blogposts, I have already indicated a target of Rs 46.50 which was achieved today.

And now it seems, we may be having a reversal of the downtrend in USDINR. The break above Rs 46.50 is suggestive of this. Moreover Rs 44/- has become a strong base for the currency pair which is also a technical retracement level.



We know that therre is an inverse correlation with the NIFTY and if USDINR changes its 'trend' then it may suggest that sooner or later Nifty too may change its current uptrend.

I would therefore watch USDINR more closely in the next few days. Those who trade the USDINR may book some profit (at least partially) at Rs 46.75+ levels and re-enter in corrections.

Happy trading!

CA Rajiv D Khatlawala
www.investogyan.com