USD/INR trades in symmetrical triangle pattern

USD/INR has formed a reversal spinning bottom candlestick pattern as on weekend of July 12, 2019 and thereafter, it has witnessed almost 5.24 per cent depreciation against US dollar. However, considering the daily time frame, USD/INR is trading in a symmetrical triangle pattern since the last five months.

The symmetrical triangle can be a reversal pattern, although more often, it is a continuation pattern. Besides the triangle pattern, the daily chart shows that the Bollinger Bands have contracted, which indicates an early signal of a bigger move. 

The leading indicator RSI on daily time frame hovers in the neutral region without any bias. The daily ADX is also below 15-mark, this indicates the lack of a clear trend. Other indicators are also mirroring the same image.

Going ahead, the 100-day EMA is likely to act as an immediate support, which is currently placed at Rs 71.15, while the major support is placed in the zone of Rs 70.83-Rs 70.60 as it is the confluence of 200-day EMA and lower trendline of triangle pattern. On the upside, the zone of Rs 71.90-Rs 72.10 is likely to act as an immediate hurdle as the upper trendline of a triangle pattern is placed in that region.