USDINR: Ending Diagonal in making

USDINR was moving in a range of 62.90-63.90 for several days. After breaking the level of 62.90, the pair tumbled till 61.38 levels which was marked on 23rd January 2015. The pair has retraced to 38.2% retracement of the previous up move and gave a bearish break in the rising channel formation.
However, prices have formed an ending diagonal pattern at the end of the down move thus suggesting the likely termination of the down move.

As per wave theory, the rally from 58.22 till 63.90 was a double corrective rally (a-b-c-x-a-b-c). After completing the double corrective pattern, prices then moved down in a simple corrective pattern (a-b-c). It seems that the pair will not see further downfall and it is likely it will reverse from here. The pair can test the level of 62.30-62.40 levels in near term.

In short as far as the level of 61.30 is intact on downside, expect prices to move up till 62.30-62.40 levels in near term.


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