After spending almost 3 months consolidating in an unusual “low volatility” trading range, the dollar may be headed for some swift moves ahead. The RSI indicator (in pink) given in the lower ender of the chart pasted above has broken the falling trend line to the upside. This kind of a breakout in an indicator presages that price too will break out in the same direction – meaning $/inr will break out of the triangle pattern towards 47.50
47.50 is critical as a sustained breach of this level will see the rupee trip all the way towards 48.80-49.
The MACD indicator also supports the view that momentum could be building in favor of the dollar.
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