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Published on 9/02/2018 10:35:06 AM | Source: GEPLCapital Ltd

The dollar traded lower against a basket of major currencies easing off session highs - GEPL

Posted in Currency Report| #GEPLCapital Ltd #Currency Tips

Market Commentary

The dollar traded lower against a basket of major currencies easing off session highs as US bond yields pared some of their gains but remained well supported. The U.S. dollar index, fell 0.11% to 90.06.

USD/JPY fell 0.39% to Y108.94 as investors piled into safehaven yen amid risk-off sentiment.

GBP/USD rose 0.38% to $1.3929 after the Bank of England stood pat on interest rates but signalled that rate hikes could be needed earlier than expected as the rapid pace of inflation continued.

GBP/USD rose to a session high of $1.4065 before paring gains.

EUR/USD rose 0.02% to $1.2264 USD/INR opens at 64.50 above the previous close of 64.44.Prices corrected and made an intraday low of 64.28. But in the latter part price pullback making a high of 64.57 and closed at 64.40. If prices sustain above 64.20 we might see prices testing 64.65 levels.

USDINR Technical Outlook

Observations:

* Prices break above the lower low lower high pattern and closed above the swing high placed at 64.26 *  ADX=18 and RSI near resistance indicating prices might remain range bond

Inferences:

* Trend to remain bullish till 64.20 is not broken on the downside

* If prices sustain above 64.20 we might see prices testing 64.65 levels

EURINR Technical Outlook

Observations:

* After making bearish engulfing pattern are heading down and closed below 79

* RSI heading downward and negative divergence in MACD histogram indicating at short term correction

Inferences:

* Trend to remain bullish till 77 is not broken on the downside

* If prices sustain below 79 we might see prices testing 78.50 levels

GBPINR Technical Outlook

Observations:

* After making an evening star pattern prices are heading down

* Negative divergence in RSI and negative slope in MACD histogram is indicating at short term correction

Inferences:

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

* If prices sustain below 89.90 we might we prices testing 89.20

JPYINR Technical Outlook

Observations:

* Prices breakout above the lower high lower low pattern and closed above the swing high placed at 58.64

* ADX=32 +DMI>-DMI indicating strong bull trend and RSI,MACD breaking above the consolidation indicating strong bullish momentum

Inferences:

* Trend to remain bullish till 58 is not broken on the downside

* If prices sustain above 58.60 we might see prices testing 59 levels

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