IGI Logo

EURINR November futures formed hammer near psychological support of 84 - HDFC Securities 

USDINR

Technical Observations:

USDINR November futures formed hammer on Thursday indicating short term reversal. However, the pair still remain well below 50 days simple moving average (DMA) indicating medium term weakness

It has short term resistance at 74.34, the 20 DMA and support around 73.90, the unfilled gap area.

Momentum oscillator, Relative Strength Index (RSI) of 14 days period pierced below 50 and average line indicating weak momentum.

MACD line has been placed below zero line indicating short term down trend.

Looking at the above technical evidences, we believe USDINR November futures expected to show short covering bounce in coming days and we could see level between 74.50 to 74.70. The trend remains bearish until it closes above 74.75 and start forming bullish sequence of higher top higher bottom on daily chart.

EURINR

Technical Observations:

EURINR November futures formed hammer near psychological support of 84 which could act as short term reversal pattern. However, down trend of EURUSD could limit the gains and push EURINR lower.

The pair has been highly oversold on daily and weekly time span indicating short covering bounce in coming days.

Momentum oscillator, RSI has been placed in oversold zone and trying to reverse from lower level.

MACD has been signaling continuation of bearish trend as it has been heading south.

The spread between –DI and +DI has been widening with negative cross-over. ADX line direction is on north indicating bearish trend.

Above technical evidences indicating bearish trend with some short covering bounce. The pair has resistance at 85.75 and support at 83.50.

GBPINR

Technical Observations:

GBPINR November futures formed bullish candle and closed near swing high on hourly chart cleared the path for short covering.

The pair has been forming expanding triangle pattern on daily chart. It had whipped out all the gains of October month, in last three week of November month.

The short term moving averages expected to cross medium term moving averages downward indicating continuation of bearish trend

Momentum oscillator, RSI has formed positive divergence and exited from oversold zone indicating short term trend reversal.

MACD has turned slightly upwards and gap between MACD and MACD averages started narrowing indicating short covering.

GBPINR November futures expected to show short covering bounce in coming days, subject to it holds the level of 99.50. While on higher side it has resistance at 101.70.

JPYINR

Technical Observations:

h bearish sequence of lower top lower bottom on daily and weekly tim

It has been trading well below short term and medium term moving averages.

Momentum oscillator, RSI has been placed below 50 and formed positive divergence indicating short term reversal.

MACD line flattened below zero line while direction remains down indicating continuation of weaker trend.

ADX line heading higher with negative crossover indicating bearish direction.

The pair has minor resistance at 65.67, the 20 DMA and support at 64.75 followed by 64

We remain bearish in JPYINR November futures and short covering bounce can be used as selling opportunity. The said view will negate only above 66.40.

To Read Complete Report & Disclaimer Click Here

Please refer disclaimer at https://www.hdfcsec.com/article/disclaimer-1795

SEBI Registration number is INZ000171337

Views express by all participants are for information & academic purpose only. Kindly read disclaimer before referring below views. Click Here For Disclaimer