Range Markets

  • USD/INR charted a Doji candle on Monday, neutralizing the immediate bearish view. 
  • A close above Monday’s high is needed to confirm a bullish reversal.

USD/INR created a Doji candle on Monday, which comprises long wicks and a small body. The wicks represent a two-way business and the small body represents flat close.

As a result, the Doji candle is considered a sign of indecision in the marketplace. USD/INR has charted a Doji candle at 3.5-month lows. As such, one may argue that the indecision is predominantly among sellers.

The Doji, therefore, indicates bearish exhaustion. However, while the immediate bearish outlook stands neutralized, the outlook would turn bullish only if the pair ends Tuesday above Monday’s high of 74.8180.

Alternatively, a close below Monday’s low of 74.5280 would imply a continuation of the sell-off from the June 16 high of 76.42 and shift risk in favor of a drop to 74.00.

Daily chart

Leave a Reply

Your email address will not be published. Required fields are marked *