Rupee ends 5 session gaining streak amid rising crude oil prices - HDFC Securities
* After 5 days of consecutive strength, rupee reversed the trend and closed in red with a loss of 11 paise against the dollar, to settle at 71.02.
* In yesterday’ session, USDINR spot recovered more than 30 paise from the day’s low.
* Technically, there is a strong support placed at 70.75 in USDINR pair. Any level below 70.75 in spot would result in to fresh breakdown on the charts in USDINR.
* Crude oil data released by US Energy Information Administration (EIA) showed that the inventories reduced by more than expected, pushing up the oil prices.This development has weighed on rupee during today’s session.
* For last four trading sessions, ICE Dollar Index has been trying to form a base around 97.50. • Month till date rupee has underperformed the Asian basket against the Dollar.
* The U.S.-China trade war was back in focus after U.S. Vice President Mike Pence said Washington “does not seek confrontation with China,” nor does it want to “contain China’s development.”
* However, Pence criticized Beijing’s building of a “surveillance state,” and “increasingly provocative” military action, as well as its handling of the protests in Hong Kong.
USDINR OCT. FUT. :
* The Oct USDINR pair has taken the support on upward sloping and horizontal trendline on the daily charts.
* Any level below 70.75 in Oct fut would considered fresh breakdown on the charts
* Pair has formed bullish “Hammer” candlestick pattern at strong support of 70.75, indicating probable bullish trend reversal
* Traders should go long with the SL of 70.75 in Oct Fut
USDINR OCT. FUT. DAILY CHARTS
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