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Currency Insights Weekly

Technical Observations:

? USDINR Aug fut. retraced to 82.37, 50% of recent upswing and recovered. However, the pair closed below 21 DEMA and marked the first weekly decline in five.

? Momentum oscillator, Relative Strength Index of 14 days turned weak and currently placed below 50.

? Long unwinding has been seen as the price along with open interest declined in the last week (Reference table on page 7).

? Medium-term bias turned weak after a recent retracement. USDINR Aug fut is expected to find support around 82.35 and resist at 83.

USDINR Aug Futures Daily Chart

EURINR

Technical Observations:

? EURINR Aug fut started forming lower tops and lower bottoms on the daily chart. It also broke the short-term moving averages support.

? It has broken neckline support of a bearish head and shoulder pattern with an expected target of 88.21.

? On the daily chart, the Relative Strength Index of 14 days, is placed below 50 and weakening. The MACD is pierced below the MACD average and zero line.

? The weakness in the EURINR Aug futures to prevail in the coming days and short covering bounce towards 90.10 could be sold-off for a target of 88.21.

EURINR Aug Futures Daily Chart

GBPINR

Technical Observations:

? GBPINR Aug fut breached rectangular box support and closed below short-term moving averages.

? Momentum oscillator, RSI has been heading towards an oversold zone.

? MACD line is hovering below the zero line and weakening.

? Long unwinding has been seen as price along with open interest declined.

? GBPINR turned bearish in the week gone. The box pattern targets come at 102.83 and get negated if it crosses 105.35. We stay bearish till the pair trades below 105.35.

GBPINR Aug Futures Daily Chart

JPYINR

Technical Observations:

? JPYINR Aug fut breached the June month low and traded below 10 DEMA.

? Relative Strength Index of 14 days, is about to enter in the oversold zone.

? MACD is placed below a zero line with a negative histogram exhibiting a bearish trend.

? Derivative data indicating a long unwinding in the week gone as price and open interest declined.

? The bearish trend in the JPYINR Aug fut could continue in the coming week and the bounce may be short-lived. The pair has support at 55.70 and resistance at 57.25.

JPYINR Aug Futures Daily Chart

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