USD/INR Signal Today - 22/07: Record High Possible (Chart)
Date
7/23/2024 11:22:57 PM
(MENAFN- Daily Forex) Today's USD/INR Signal
Risk 0.75% Trades may only be entered prior to 5pm Tokyo time Tuesday.
Short Trade Idea
Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of RS 83.7184. Place the stop loss 10 pips above the local swing high. Move the stop loss to break even once the trade is 100 pips in profit. Remove 50% of the position as profit when the price reaches 200 pips in profit and leave the remainder of the position to ride.
Long Trade Ideas
Go log following a bullish price action reversal on the H1 time frame immediately upon the next touch of RS 82.9554. Place the stop loss 1 pip below the local swing low. Move the stop loss to break even once the trade is 20 pips in profit. Remove 50% of the position as profit when the price reaches 20 pips in profit and leave the remainder of the position to ride.
The best method to identify a classic“price action reversal” is for an hourly candle to close, such as a pin bar, a
doji , an outside or even just an engulfing candle with a higher close. You can exploit these levels or zones by watching the
price action
that occurs at the given levels.
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USD/INR Analysis
My
USD/INR forecast
today is that a bullish breakout beyond the all-time high at RS 83.7184 is likely to happen, but is far from certain. It may be that the price fails after testing this level, as markets might balk at sending the Rupee into record low territory, not to mention potential intervention to prop up the Rupee by the Reserve Bank of India might be forthcoming.
There are three ways to try to play the Rupee today:
If at the close of business in India today, the price has closed near the high of the day and above RS 83.7184, then a long trade could be entered with a relatively wide stop loss, for example below the nearest support level at RS 82.9554. Trail the stop loss if the trade becomes a good winner.
If the price exceeds RS 83.7184 today but then ends the day below that level and near the low of the day's range, that could be a good signal for a short trade entry, which could get a tailwind from any Reserve Bank of India intervention. The stop loss can be placed just behind the record high.
If the price does not exceed the record high but falls to the nearest support level which I have identified at RS 82.9554, and makes a bullish bounce there, a long trade entry could be appropriate, targeting the record high at RS 83.7184.
The technical picture looks bullish, with a rising pattern of price action supported by an ascending trend line joining the key recent sing lows.
There is nothing of high importance due today regarding either the USD or the INR.
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