Tomorrow should be an interesting day to watch. At EOD, the price action of today has not turned out according to my wish, hope and expectation. As of now, we seemed to have stopped near a support. Cannot say whether price will move up again and establish uptrend on a larger time-frame, or whether the price will go sideways, or down. On the chart, most parameters indicate weakness. The only observation that goes against 'weakness' is the present support level at which price is resting.
So, as of now, I see the following possibilities:
- A significant gap-down tomorrow 'throughout' the day (meaning not just at the opening, but throughout the day)
- A small up-move in few(2 to 4) trading days before the price breaks down below this support. Even if the up-move happens, it will still require the charts to be observed at that later time to conclude whether the up move will sustain or not. I am making this conclusion of down move based only upon my psycho-technical bearish bias on the USDINR pair.