- The USD / INR fell 2.41% last week, the biggest weekly drop since December 2017.
- The weekly chart suggests the possibility of a sell at the support of the uptrend line.
The USD / INR is looking south, after trimming a bearish marubozu candle last week with a 2.41% drop. This is the biggest weekly drop since December 2018.
A bearish marubozu candle occurs when trades control the price action from open to close. In other words, the bearish marubozu indicates the market’s determination to trade primarily in the downward direction.
As such, a decline in the trendline connecting the lows of January 2018 and July 2019 seems likely. At time of printing, trendline support stands at 72.1820.
Declining 5 and 10 day simple moving averages (SMA) and a violation of the 50 week SMA support the bearish case.
Indeed, the indicators of the daily chart indicate oversold conditions. Therefore, a temporary period may be seen before a decline in the 2-1 / 2 year uptrend line.