USDINR - Technical Update

1. We have discussed this pattern earlier in one of our updates on USDINR (please refer here).
2. As soon as we get perilously close to one of the boundaries of this triangular contraction, and everything suggests that a breakout or breakdown may be in the offing, prices suddenly reverse and meander around hopelessly, dashing all hopes of a much anticipated trending move.
3. That's the character of a consolidation, much worse a coiling pattern.
4. But every time we get a bounce off the pattern boundaries, what we actually have is addition to the already long list of frustrated BO/BD traders. This frustration and eventual trapping of one set of players is what gives the boost to the legitimate breakout or breakdown.
5. Once again instead of talking about levels, I would advise patience, we may be very close to the resolution of this long coiling pattern.
6. Remember the BO would be obvious, and there would be plenty of opportunities to enter the trend, and the trend would be large enough to make good amount of money.