USDINR Analysis

  • 2023-12-12
  • Ruchit Thakur

So Let's discuss #USDINR move and what we can expect further with the help of #USDINR chart and also with the help of Option chain.

We will also discuss Pattern which #USDINR is making and it's under process. 

#USDINR : This is #USDINR Spot Daily time frame Chart : 

Look at this chart carefully and understand the path ahead. #USDINR is in the process of making an ascending triangle pattern on a daily time frame and about to give breakout from the 83.40-83.50 zone. Upside is open for 84 and 84.50 zone. Downside 82.90-83 is a strong support zone. We will also discuss about Ascending Triangle pattern and how it acts and it's behavior in details and we will also discuss #USDINR monthly option chain

#USDINR December Monthly Options: This is #USDINR December Monthly Options Chain : If we look at this option chain then we can see that highest 6.50 lacs put writers is placed at 83 strike which means market participants are expecting 82.90-83 as a strong support for #USDINR. Upside 83.50 strike has highest call writers of approximately 5 lacs of open interest which means market participants are expecting upside is capped till 83.50 zone in spot. Above 83.50 next 84 has highest call writers with cumulative 4 lacs of open interest. Best part is our #USDINR daily chart is also conveying the same story, so we can say both the chart and monthly option chain are aligned.

Now let's discuss Ascending Traingle pattern and how it works : 

Ascending Triangle Pattern:  The ascending triangle pattern is a bullish continuation pattern and is characterized by a rising lower trendline and a flat upper horizontal resistance. This pattern indicates that buyers are more aggressive than sellers as price continues to make higher lows which shows strong demand in price. The pattern completes itself when price breaks out of the triangle in the direction of the overall trend. 

After price gives a strong breakout above the upper horizontal line, traders look for confirmation of the pattern via continued upward momentum.

The ascending triangle has an inherent measuring technique that can be applied to the pattern to gauge likely take profit targets.

For the Ascending triangle, traders can measure the distance from the start of the pattern, at the lowest point of the rising trendline to the flat horizontal line. That same distance can be transposed later on for the target as shown in image.

 

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