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Rupee Likely To Open Lower On Risk-off Moods - HDFC Securities 

Indian rupee expected to open slightly higher following overnight weakness in dollar against major trading currencies and stronger foreign fund inflows. The non-deliverable forwards suggest USDINR could open 6 paise higher from previous close.

On Wednesday, rupee ended on flat note as at one end stronger dollar pushed lower while dollar inflows pulled higher. Spot USDINR closed at 72.96 with a paise gains.

Technically, spot USDINR is in downtrend following lower peak and lower trough on daily and weekly chart. It has support at 72.75, the September low, and resistance at 73.40

Asian stocks looked set to retreat Thursday after a decline in technology and retail shares weighed on U.S. benchmarks as earnings continued to roll in. On Humpday, S&P 500 pared opening gains to close barely in the green following its biggest two-day rally in almost three months, while the Nasdaq 100 finished lower. Elsewhere, Oil climbed as OPEC+ said it will keep pushing to quickly clear the surplus left behind by the pandemic. The dollar held gains amid better-than-expected ADP employment data.

President Joe Biden told House Democrats on Wednesday that backing anything less than $1,400 stimulus checks would mean starting his presidency with a broken promise.

The pound slipped ahead of Thursday’s Bank of England meeting; the yield on 10-year gilts rose to the highest since November. The statement from Boris Johnson threating to suspend parts of the Brexit deal relating to Northern Ireland, as a dispute escalated after the European Union’s threat to impose controls on the border in a spat over vaccine supply, would weigh on pound.

Italian bonds and stocks surged after Mario Draghi, the former ECB president, was tapped to be the country’s next prime minister.

USDINR

USDINR February futures resisted at 20 hours EMA

The pair has been trading in down trend by forming lower peaks and lower troughs on all major time scale.

Momentum oscillator, relative strength index of 14 period on hourly chart heading southward suggesting weaker momentum

The pair is having support at 73.05 and resistance at 73.22 followed by 73.42.

We remain sideway to bearish in USDINR February futures and expect 73.05 in coming days

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