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USD/INR

Strategy for coming week

Sell on rise 83.00-83.20

Stop Loss @ 83.50

View: Range bound

Target @ 82.50-82.20 The USDINR pair has reached the upper bound of the

consolidation, so we recommend a contra trade of selling near the

83.00 with a stop loss of 83.30 and expect the pair to move lower

towards 82.50-82.20

Technical Outlook on Rupee

• After weeks of consolidation, the pair finally gained momentum and managed to move higher and test the 83.00 mark in a matter of two days.

• The RSI plotted on the daily chart can be seen head higher, indictaing presence of bullish momentum in the pair.

• Looking at the price action in the recent past, the pair has been broadly range bound between 83.30 to 81.80. the 83.30 is also a space wherein we have seen central bank intervention. So, if we were to go by the price action, we might see a selloff in the pair around the 83.00-83.20 zone.

Fundamental news on USDINR

• In the week that passed the FOMC minutes was the major focus point. And the FED chair mentioning that the central bank is looking to raise the interest rates, pushed the USDINR pair higher towards the 83.00 mark.

• In the coming week, we have the inflation data from the US economy, which could spike up the volatility in the pair. We also have the consumer confidence data, which could spike up the volatility on the pair a notch.

USDINR – DAILY CHART

EURINR

Strategy for coming week

Buy on Dip @ 89.80

Stop Loss @ 89.40

View: Range bound

Target @ 90.70

The EURINR pair has been moving in a range between 90.70 and

88.30 since the past few months. As of now the pair seems to be

heading higher. So, any dip towards the 89.80 can be bought in with a

target of 90.70. we recommend a strict stop loss of 89.40.

Technical Outlook on EURINR

• The EURINR pair bounced off the 20 Week moving average in the previous week, and managed to move higher above the 90.00 mark.

• The RSI plotted on the daily chart can be seen moving higher towards the overbought zone, indictaing presence of bullish momentum in the pair.

• Going by the price action, the EURINR pair seems to be bullish, we recommend a buy on dip strategy. If the pair moves lower towards the 89.80-mark one can initiate a long position with a stop loss of 89.40 and expect a target of 90.70 on the upside.

Fundamental news on EURINR

• It is yet another week with no major data releases that could spike up the volatility in the EURINR pair.

• The only major data release from the EU in the coming week is the German ZEW Economic Sentiment which is expected come in lower than the previous reading, indictaing reduced confidence in the EU economy

EURINR – DAILY CHART

GBPINR

Strategy for coming week

Sell on rise @ 105.00

Stop Loss @ 104.50

View: bullish

Target @ 106.60-107.00

The GBPINR has managed to break multiple resistance levels and

is expected to head high towards the 106.60-107.00 mark

Technical Outlook on GBPINR

• In the week that passed by the GBPINR pair reacted to the softer dollar and rallied higher towards the 106.00 mark a level not seen since 2015.

• The RSI plotted on the daily chart can be seen heading higher, indictaing presence of bullish momentum in the pair.

• Going by the price action, the GBPINR pair seems to be in a solid bull move and might head higher towards the 106.60- 107.00 mark which is very close to the lifetime high. We could go long in the pair near the 105.00 mark and keep a strict stop loss of 104.50 and expect a target of 106.60- 107.00

Fundamental news on GBPINR

• The GBPUSD pair is majorly reacting to interest rate differential between the US and the UK economy while completely ignoring the growth differential between both the economies. This makes the GBP pairs very fragile, which means that the slightest change in the market mood and the direction in the dollar could lead to a major selloff in all the pound pairs. •

In the coming week, we have a fair few data releases from the UK economy, starting off with Claimant Count Change, which is expected to increase significantly, followed by the GDP data which is expected to reflect contraction in the economy.

GBPINR – DAILY CHART

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