The breakdown in USDINR continues with a renewed trending bias.
The break of the 67/66.55 support zone (Jan breakout/July TL) highlights the importance of Fibonacci retracement violations confirming a deeper corrective phase.
After break-away, run away gap at 65.2700 levels (refer daily charts): Gap down opening candle gravestone doji & shooting star candles, the current prices consistently well below DMAs, more dips upto 63.80 on cards.
The pair has edged lower at 65.0350 during European session sensing more weakness ahead and ended with a stern bearish candle with a big real body.
ON a broader perspective, the break out below 65.1470 (38.2% Fibonacci retracement levels) has indicated that more pullback is likely and bears are likely to resume their primary downtrend.
The current prices on this timeframe have drifted below 7&21-EMAs.
Most importantly, both leading and lagging oscillators are signaling more selling pressures with their bearish convergence to the ongoing price dips. Thereby, it seems that major trend of this pair turning into reversal phase.
Option Trade Tips:
USDINR vol-adjusted carry has jumped back to pre-tapering levels.
USDINR vol-adjusted carry has jumped back to pre-tapering levels.
So, dubious bulls on hedging grounds, earn carry through 1M USD put spreads.
Enter USDINR put spreads that offer pre-taper tantrum levels of vol-adjusted carry.
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