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Market Round up

* Indian rupee and shares are set to open lower as investors eyed U.S. payrolls data to gauge more signs of a shift in rate plans from the Federal Reserve. The forward market indicates spot USDINR could open around 81.17 and is expected to rise further following a stronger dollar againstAsian currencies.

* On Thursday, spot USDINR declined 21 paise to 81.22 amid broad-based weaknessin the dollar following Fed Chair Powell’sless hawkish comments.

* Technically, spot USDINR has been forming a bearish chart pattern of lower tops and bottoms. It has a head and shoulder pattern neckline support of around 80.70 breaking it will confirm the further downfall. In the near term, the pair is having support at 80.70 and resistance at 81.90

* Stocks declined in Asia after US equities struggled for direction, with traders awaiting a jobs report later Friday for clues on the Federal Reserve’s next policy steps. Bets on where the central bank rate will peak have now dropped below 4.9%, according to swap markets. The current benchmark sits in a range between 3.75% and 4%.

* The dollar held firm on Friday but was pinned down near 16-week lows against a basket of major currencies. The US dollar fell to the lowest in more than three months after a core gauge of inflation rose in October by less than expected, signalling that the Federal Reserve’sinterest-rate hikes are helping cool inflation.

* Elsewhere, oil was set for a weekly gain with China further easing Covid restrictions and the US considering a pause in salesfromits strategic reserves

* The US personal consumption expenditures price index excluding food and energy rose a below-forecast 0.2% in October from the month before, CommerceDepartment figuresshowed Thursday

USDINR

Technical Observations:

* USDINR Dec fut hovering below 20 days simple moving average. It has formed a Doji candlestick pattern indicating indecisiveness among traders.

* The pair has been facing resistance around 81.87, the 20 days simple moving average.

* It has support at 80.88, the lower band of the Bollinger Band.

* The derivative data indicates a short build-up in the pair with a fall in the price and an increase in the volumes and open interest.

* Momentum oscillator, RSI is currently placed below 50 and turned weak indicating bearish momentum

* The above technical evidence suggests bearishness with the downside support at 80.90 and resistance at 82.15.

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