USDINR: Break of an important support zone
USDINR has broken down from multiple support zones. It has given a breakdown with a gap from a channelised move. Although it may re-test the previous support zone of Rs66.25-Rs66.21, but may see some selling pressure. The momentum indicator has turned negative. The bollinger bands are expanding, indicating more downside and the moving averages will be the resistance on the way up. From a short-term perspective, USDINR is a ‘sell’ with targets of Rs65.25 and reversal being Rs67.15.
GBPINR: Drifting lower
GBPINR has broken down from a rising trendline and is drifting lower. Any rise should be seen as a shorting opportunity. It is poised to re-test its previous low, the break of which will lead the currency pair to new multiyear low. The Weekly and Daily Momentum indicators are negative. The weekly moving averages will be the resistance on the way up. From a short-term perspective, GBPINR is a ‘sell’ with targets of Rs78.81 and reversal being Rs82.45.
EURINR: Pull-back near completion
EURINR has retraced 38.2% of the previous fall from Rs73.35 to Rs70.04. The pull-back has been in a rising channel and the currency pair is at the upper end of the channel. The pair has faced resistance near 40DEMA. So, the pull-back looks near completion and a fall could resume. The weekly momentum indicators are in ‘sell’ mode, and hence the EURINR can test the lower end of the channel. It is also trading below its weekly key moving averages. On the other hand, Rs71.83 will act as a key resistance on a closing basis.
JPYINR: At a crucial juncture
JPYINR is near its crucial level of Rs57.15, and holding of this level may lead to a short-term bounce. A break of Rs57.15 will send the currency pair down to the lower Bollinger Band, which is at Rs55.85. The currency pair has retraced 61.8% of the previous rise and may consolidate at this level. The weekly and daily momentum indicators are in ‘sell’ mode. The daily and weekly moving averages will be the important resistance levels on the upside. From a short-term perspective, one can sell JPYINR for a target of Rs55.85 with a stop loss of Rs58.7.
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