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Published on 5/01/2018 10:45:29 AM | Source: GEPL Capital Ltd

USD/INR might test 63 levels - GEPL

Posted in Currency Report| #GEPLCapital Ltd #Currency Tips

USD/INR might test 63 levels

Market Commentary

The dollar continued to languish at there-month lows on Thursday as an upbeat labor market report failed spark a rebound in the greenback amid pressure from a rally in the euro to nearly threeyear highs.The U.S. dollar index fell 0.24% to 91.67.

A sharp rally in the euro added to pressure on the greenback as the single currency neared three-year highs on upbeat Eurozone service sector, which stoked expectations that the European Central Bank is considering reining in its loose monetary policy measures.

Earlier Thursday, data showed that UK consumer lending slowed to its weakest since 2015 in the three months to November, while service sector activity picked up in November.

The euro and the pound remained higher, with EUR/USD up 0.38% at 1.2062 and with GBP/USD adding 0.18% to 1.3540. The yen fell, with USD/JPY up 0.24% at 112.78

USD/INR open at 63.69 below the previous days closed of 63.70 and prices made an intraday high of 63.77. Then prices continued its bear mood and made an intraday low of 63.52 and closed at 63.56. For the day we expect it to trade between 63.40 and 63.80.If prices sustain below 63.61 we might see prices sliding down to 63.40 levels

USDINR Technical Outlook

Observations:

* Prices making lowe low and low high and close below the support placed at 63.61

* ADX =17 and RSI =29 indicating we could notice short term bear exhaustion in coming days

Inferences:

* Trend to remain bearish till 64.4 is not broken on the upside

* If prices sustain below 63.61 we might see prices testing 63.40 levels

EURINR Technical Outlook

Observations:

* Prices are trading in triangular pattern formation and have sustain above the range 75.84 and 76.31

* Prices have sustain above the swing high placed at 76.31 and closed near the trend line resistance

Inferences:

* Trend to remain bearish till 76.97 is not broken on the upside

* If prices break below 76.31 we might see prices testing 75.84 levels

GBPINR Technical Outlook

Observations:

* Prices have sustain above the gap and closed below the resistance placed at 86.80

* Prices closed below the five day low indicating bearish momentum

Inferences:

* Trend to remain sideways till prices did not close above 86.80

* If prices break below 86.28 we might see prices testing 85.70 levels

JPYINR Technical Outlook

Observations:

* Prices are making lower high lower low pattern

* RSI and prices showing positive divergence indicating short throwback

Inferences:

* Trend to remain bearish till 57.56 is not broken on the upside

* If prices break below 56.44 we might see prices testing 56 levels

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