The dollar traded lower against a basket of major currencies as sharp rallies in both yen and euro weighed on upside momentum ahead of a crucial consumer inflation report due Wednesday. The U.S. dollar index, fell 0.49% to 89.57.
USD/JPY fell to 0.92% to Y107.66 on expectations that the Bank of Japan was poised to start reining in loose monetary policy measures despite expectations that governor Kuroda who has repeatedly affirmed the need for accommodative monetary policy would be reappointed for a second term
EUR/USD rose 0.56% to $1.2361, while GBP/USD gained 0.32% to $1.3883 as the latter was supported by data showing UK inflation rose 3% to remain close to five-year highs.
USD/INR opens at 64.44 below the previous close of 64.52.Prices were trading between 10 paisa range 64.34-64.44.For today we expect the pair to trade 64-64.70.If prices sustain above 64.40 we might see prices testing 64.70.
USDINR Technical Outlook
* Prices break above the lower low lower high pattern and closed above the swing high placed at 64.26 * ADX=20 and RSI near resistance indicating prices might remain range bond
* Trend to remain bullish till 64.20 is not broken on the downside
* If prices sustain above 64.40 we might see prices testing 64.70.
EURINR Technical Outlook
* After making bearish engulfing pattern are heading down and failed to close the gap
* RSI heading downward and negative divergence in MACD histogram indicating at short term correction
* Trend to remain bullish till 77 is not broken on the downside
* If prices break below 79 we might see prices testing 78.50 levels
GBPINR Technical Outlook
* Prices have close above the support placed at 89.30
* Negative divergence in RSI and negative slope in MACD histogram is indicating at short term correction
* Trend to remain bullish till 88.50 is not broken on downside
* If prices sustain below 89.50 we might we prices testing 89
JPYINR Technical Outlook
* Prices breakout above the lower high lower low pattern and closed above the swing high placed at 58.64
* ADX=36 +DMI>-DMI indicating strong bull trend and RSI,MACD breaking above the consolidation indicating strong bullish momentum
* Trend to remain bullish till 58 is not broken on the downside
* If prices sustain above 59 we might see prices testing 59.60 levels.
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