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USD/INR

The lack of data means that the traders will anchor themselves to any an every news flow we have during the day. Today we had a few releases from the EU, which did not carry much significance, but it did create a lot of jitters. Since the past couple of sessions the USDINR pair has been trading in a tight range, Monday was no different, the pair traded between 81.77 and 81.90, through out the session. The price action suggests that the trading range of the pair has shifted lower and the new range seems to be 81.70 on the downside and 82.00 on the upside. The RSI plotted in the daily chart can be seen drifting lower, indicating slow and steady reduction in the bullish momentum in the pair. Technically, we see a resistance placed near the 82.00 zone, on the downside the immediate support is placed near the 81.70 zone.

EUR/INR

The French markets were closed, during the day we had German Industrial Production and Sentix Investor Confidence, which came in significantly came in lower than expected, and this spiked up the volatility despite having very less significance. On Monday the EURINR pair opened on a flattish note, for the 1 st half of the session the pair moved lower towards the 90.30, later as we moved towards the end of the session we saw a fair bit of recovery.

The RSI plotted on the daily chart can be seen flattening, indicating exhaustion in the momentum in the pair. The price action suggests that the 90.50- 90.80 zone could act as a major hurdle, so in the sessions to come we might see this level act as a resistance. On the downside the support is placed near the 89.50 level, if this level is breached on the downside we might see further sell off in the pair which could take it lower towards the 89.30 zon

JPY/INR

The Volatility in the bond yields have increased significantly, after the Friday’s data the traders have been moving between a hawkish and a dovish FED. The data released supports further tightening, which has been pushing the US Bond yields higher, which put a lot of pressure on the Yen.

The JPYINR pair felt the heat of the bond yields and the pair opened on a negative note. If we take a closer look on the intraday charts we can see that the JPYINR pair was broadly sideways and oscillated between 61.00 and 60.80. The RSI plotted on the daily chart can be seen forming a bearish hinge near the reference line, indicating exhaustion in the bearish momentum. The price action suggests that the 61.20- 61.30 could act as a resistance in the sessions to come. On the downside the 60.50 is the level we will keep a close watch as a support zone

GBP/INR

The softening dollar has been the major driver for the pound since the past few weeks. In this week we have the BoE policy wherein the central bank is expected to raise the interest rates by 25 BPS to tackle the double digit inflation and to keep up with the FED.

On Monday the GBPINR pair was very volatile, in the first few minutes the pair moved from the opening tick of 102.86 to around 103.40. The RSI plotted on the daily chart can be seen heading higher towards the overbought level, indicating increasing bullish momentum in the pair. Technically, the GBPINR pair has broken out of a consolidation, and is heading towards the 103.80 and 104.25 zone. On the downside, the 103.00 mark is expected to act as a support level, if the pair breaches below the said level, our bullish view will be negated.

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