"Forecasting the USD/INR: Potential Drop to 43 on the Horizon?"
USD/INR Elliott Wave Analysis: Is a Major Correction to 43 in Sight?
The USD/INR pair has been riding a long-term uptrend for decades, reaching historic highs near 83.90 INR per USD. However, recent Elliott Wave analysis suggests that this rally may be coming to an end. The chart points to a completed 5-wave structure, with the potential for a significant correction on the horizon.
Wave Count Breakdown:
The 5-wave cycle seems to have peaked at Wave 5, indicating the possible conclusion of the uptrend.
The corrective phase is now expected to unfold in an ABC pattern, with Wave (A) potentially bringing the price down to around the 70 INR level.
A brief recovery in Wave (B) could follow, but Wave (C) is projected to drive the USD/INR further down, potentially reaching the 43 INR mark—a dramatic shift from current levels.
What Does This Mean for Traders?
If this Elliott Wave analysis holds true, the USD/INR could face a substantial bearish move in the coming years. This would present a key opportunity for traders to short the pair, especially as the price approaches the critical Wave (A) support level. However, before making any moves, traders should watch for confirmation signals and stay mindful of macroeconomic factors that could impact the U.S. dollar and the Indian rupee.
For those on the long side of the trade, this might be a good time to start reducing exposure or look for exit points, as the risk of a market reversal appears to be increasing.
Key Levels to Watch:
Wave (A) Support: ~70 INR/USD
Wave (C) Target: ~43 INR/USD
This correction could take time to play out, but the chart indicates that a long-term shift may be underway. Keep monitoring the pair for key breaks in structure to confirm the onset of the corrective waves.
The USD/INR pair has been riding a long-term uptrend for decades, reaching historic highs near 83.90 INR per USD. However, recent Elliott Wave analysis suggests that this rally may be coming to an end. The chart points to a completed 5-wave structure, with the potential for a significant correction on the horizon.
Wave Count Breakdown:
The 5-wave cycle seems to have peaked at Wave 5, indicating the possible conclusion of the uptrend.
The corrective phase is now expected to unfold in an ABC pattern, with Wave (A) potentially bringing the price down to around the 70 INR level.
A brief recovery in Wave (B) could follow, but Wave (C) is projected to drive the USD/INR further down, potentially reaching the 43 INR mark—a dramatic shift from current levels.
What Does This Mean for Traders?
If this Elliott Wave analysis holds true, the USD/INR could face a substantial bearish move in the coming years. This would present a key opportunity for traders to short the pair, especially as the price approaches the critical Wave (A) support level. However, before making any moves, traders should watch for confirmation signals and stay mindful of macroeconomic factors that could impact the U.S. dollar and the Indian rupee.
For those on the long side of the trade, this might be a good time to start reducing exposure or look for exit points, as the risk of a market reversal appears to be increasing.
Key Levels to Watch:
Wave (A) Support: ~70 INR/USD
Wave (C) Target: ~43 INR/USD
This correction could take time to play out, but the chart indicates that a long-term shift may be underway. Keep monitoring the pair for key breaks in structure to confirm the onset of the corrective waves.
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