INR recently plunged to lifetime low of 72.98, loosing its value nearly by 15% in this calendar year, while the debate continues to surround for INR future, technical indicators are showing some early sign of relief for INR weakness, possibly a major correction towards 70.00-69.80 or above.
The chart below shows that if USD falls below 71.50-71.57 in coming days, INR will gain positive momentum by Rs.1.5 to Rs. 1.7 and target 69.80-70.00 on immediate basis. From the chart it can be seen that two attempts made to break above 73 levels have been unsuccessful creating a key reversal pattern called as,” Double top”.
The key levels to watch now would be 72.00, 71.77 and 71.50.
If above assumptions turn out to be true in the coming days then we would start export hedging. Hence, request to have the limits and necessary processes is place as the reversal in USD would be equally swift.