News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
EUR/USD
Bullish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Oil - US Crude
Bearish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Wall Street
Bearish
Gold
Bullish
GBP/USD
Bullish
USD/JPY
Bearish
More View more
Real Time News
  • Commodities Update: As of 18:00, these are your best and worst performers based on the London trading schedule: Silver: 1.70% Gold: 0.95% Oil - US Crude: 0.22% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/pdcpeF9zbc
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 96.61%, while traders in EUR/USD are at opposite extremes with 73.13%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/dqXvVj6gcX
  • Fed Beige Book: - Districts saw modest price increases since last report - Food, autos, and appliances increased significantly in price - Firms continue to take on additional costs related to Covid, including ppe and technology to work from home $SPX $NDX $DXY
  • Fed Beige Book: - Economic output continued to increase across all Fed Districts at a slight to moderate pace - Manufacturing activity increased at a moderate pace in general - Consumer spending growth continues to be positive $DXY
  • Indices Update: As of 18:00, these are your best and worst performers based on the London trading schedule: US 500: 0.05% Germany 30: 0.05% France 40: -0.11% FTSE 100: -0.12% Wall Street: -0.16% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/qRmsVvTyG6
  • Heads Up:🇺🇸 Fed Beige Book due at 18:00 GMT (15min) https://www.dailyfx.com/economic-calendar#2020-10-21
  • Senate Democrats have the votes required to block GOP on aid bill $DXY $SPX
  • Senator Shelby says he is open to $1.9 trillion virus aid package depending on details - BBG
  • Oh look at that, stimulus hopes are off again. The market is definitely growing apathetic towards a follow up stimulus. The issue though is that status quo translates into greater risk of stalled economic recovery and possibly even return to recession
  • A volunteer in Brazil's AstraZeneca vaccine trial has died: Reuters via BBG
Indian Rupee, Nifty 50 Technical View: USD/INR May Rise as Index Falls

Indian Rupee, Nifty 50 Technical View: USD/INR May Rise as Index Falls

2020-09-25 05:00:00
Daniel Dubrovsky, Analyst
Share:

Indian Rupee, USD/INR, Nifty 50, Technical Analysis - Talking Points

  • Indian Rupee may be at risk to the US Dollar ahead
  • USD/INR attempting to refocus towards the upside
  • Nifty 50 looking increasingly vulnerable to a selloff

Indian Rupee Technical Analysis

The US Dollar could extend gains against the Indian Rupee. On the weekly chart, USD/INR formed a Doji candlestick earlier this month. This occurred right above the midpoint of the Fibonacci retracement – see chart below. A Doji is typically a sign of indecision. In this case, it formed at potentially the end of a downtrend.

Now, the pair is attempting to push above the 38.2% Fibonacci at 73.6844. Confirming the breakout exposes the 23.6% Fibonacci retracement at 74.9547. On the other hand, resuming the downtrend entails a push under the Doji. Which way might the Indian Rupee go in the near term?

Top Trading Lessons
Top Trading Lessons
Recommended by Daniel Dubrovsky
How can you overcome common pitfalls in FX trading?
Get My Guide

USD/INR Weekly Chart

Indian Rupee, Nifty 50 Technical View: USD/INR May Rise as Index Falls

USD/INR Chart Created in TradingView

Zooming in on the daily chart reveals a somewhat difficult road ahead. USD/INR still continues to trade under former rising support from July 2019. The breakout under it back in late August was a significant technical achievement. Yet, the pair was unable to find downside confirmation. Now, the trendline seems to be holding as new resistance. Beyond that sits falling resistance from June.

At the same time, keeping the focus towards the upside in the near term seems to be rising support from the beginning of September. If USD/INR falls back under it, the focus for the pair could shift back towards the downside. Otherwise, a climb above the former rising trend line and beyond falling resistance from June may open the door to extending gains.

USD/INR Daily Chart

Indian Rupee, Nifty 50 Technical View: USD/INR May Rise as Index Falls

USD/INR Chart Created in TradingView

Nifty 50 Technical Analysis

The Nifty 50, India’s benchmark stock index, may be at risk to deeper losses ahead. On the weekly chart below, the Nifty broke under a bearish Rising Wedge chart pattern. This has opened the door to unwinding the bounce from March’s bottom.

Starts in:
Live now:
Oct 28
( 15:10 GMT )
What is the week ahead for equities?
Weekly Stock Market Outlook
Register for webinar
Join now
Webinar has ended

Nifty 50 Weekly Chart

Indian Rupee, Nifty 50 Technical View: USD/INR May Rise as Index Falls

Nifty 50 Chart Created in TradingView

Zooming in on the daily chart shows another bearish technical warning. Earlier this month, the short-term 20-day Simple Moving Average (SMA) crossed under the medium-term 50-day SMA. This is called a ‘Death Cross’ which can at times precede a turn lower. Since then, the Nifty 50 has confirmed the downside breakout.

Prices stopped on the 23.6% Fibonacci retracement on September 24th, establishing support at 10783. A further downside close exposes the 10553 inflection point from June. Beyond that sits the 38.2% level at 10158. In the event of a turn higher, keep an eye on falling resistance from August – red line below.

Nifty 50 Daily Chart

Indian Rupee, Nifty 50 Technical View: USD/INR May Rise as Index Falls

Nifty 50 Chart Created in TradingView

--- Written by Daniel Dubrovsky, Currency Analyst for DailyFX.com

To contact Daniel, use the comments section below or @ddubrovskyFX on Twitter

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES