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Published on 13/03/2018 10:55:40 AM | Source: GEPLCapital Ltd

Dollar failed to sustain above 90 ahead of CPI data - GEPL

Posted in Currency Report| #GEPLCapital Ltd #Currency Tips

Market Commentary

The DXY dropped back below 90.00 and hit the lowest since last Thursday at 89.77. There was no particular trigger on the modest decline of the US dollar.

The bear pressure continued and the euro was sent packing down to below the 1.23 handle to 1.2294 the low. however, the yen crosses were back in play and EUR/JPY's rally lifted EUR/USD to 1.2345 and for a close of 1.2334 while markets get set for Tuesday's CPI data.

GBP/USD ran into headwinds at 1.3907 on dollar strength in London and opened NY around the figure for a further gain to 1.3917 before a 1.3904 close.

USD/JPY was stuck in a 106.35/73 range and struggled around the 21-D SMA at 106.75, piercing the descending resistance of the steep channel from 113.38 Jan 2018 highs while traders await US CPI and retail sales this week.

USD/INR opens at 65.17 below the previous close of 65.29 In the first hour of the trading session prices made a low of 65.05. Prices were trading in range making a high of 65.18 and close at 65.16. For today we expect the pair to trade between 65-65.40. If prices sustain above 65 we might see prices testing 65.30.

USDINR Technical Outlook

Observations:

* Prices break above the lower low lower high pattern

* ADX=25, RSI making higher high higher low and MACD above the zero line indicating bullish momentum is building

Inferences:

* Trend to remain bullish till 64 is not broken on the downside

* If prices sustain above 65 we might see prices testing 65.30

EURINR Technical Outlook

Observations:

* Prices are making lower low lower high pattern from past three trading session

* Negative divergence between prices and indicator are indicating some caution

Inferences:

* Trend to remain bullish till 78.80 is not broken on the downside

* If prices sustain below 81.05 we might see prices testing 79 levels

GBPINR Technical Outlook

Observations:

* Prices trading in the range 89.86 - 90.62

* ADX, RSI and MACD rounding of at same time indicating 91.86 to be an short term top

Inferences:

* Trend to remain bullish till 88.50 is not broken on downside

* If prices sustain below 90.85 we might we prices testing 89 levels

JPYINR Technical Outlook

Observations:

* Prices close below the gap and close above the support placed at 61

* ADX and RSI rounding of indicating 61.99 to be an short term top

Inferences:

* Trend to remain bullish till 60 is not broken on the downside

*  If prices sustain below 61.22 we might see prices testing 60.60 levels.

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