IGI Logo

USDINR November futures took support around 55 Days Exponential Moving Average - HDFC Securities 

USDINR

Technical Observations:

USDINR November futures took support around 55 Days Exponential Moving Average (DEMA) and closed above 21 DEMA.

Formation of Doji Candle at end of the week indicating indecisiveness ahead of October month expiry.

Momentum oscillator, Relative Strength Index (RSI) of 14 days period exited from overbought zone and given negative cross over to averages indicating continuation of weak momentum.

MACD turned down with negative cross over and histogram also turned flat at zero line indicating weakness in the pair.

USDINR November futures expected to trade lower in short term following weaker oscillators and indicators but the medium term trend remains intact on higher top- bottom formations.

The pair is having support around 74.40 and resistance at 76 odd levels.

EURINR

Technical Observations:

EURINR November futures facing stiff resistance at 200 Days Simple Moving Average (DSMA), currently placed at 88.04.

The pair has been holding support of 21 DEMA and closed above 55 DEMA.

It has started forming higher top and have to make higher bottom for trend reversal.

Momentum oscillator, RSI of 14 days period has been placed above 50 and flattening indicating consolidation.

MACD is placed above zero line with positive divergence indicating pair likely to get positive move. DMI indicators also stayed positive with +DI placed above –DI and ADX line heading higher

EURINR November futures is expected to trade with positive bias but the trend breakout can be seen only above 88.05 while on downside it may hold support around 86.60.

GBPINR

Technical Observations:

GBPINR November futures formed Doji candlestick pattern with low volume on Friday indicating indecisiveness around high. This could be due to profit booking ahead of month end.

Short term moving averages are placed well above medium term moving averages indicating bullish trend for the pair. The pair is expected to retrace in coming days following vertical rallies in last couple of days.

Medium term trend remains up but overbought condition on daily chart indicating higher level profit booking or long unwinding.

Looking at the above technical evidences, we remain Bullish in GBPINR November futures but one should make fresh long position only after retracement. It has support around 102.50 and resistance in the range of 104.50 to 104.85.

GBPUSD eyes on the 21-weekly MA resistance, currently at 1.3812 and it closed below that level suggesting sliding in coming days.

JPYINR

Technical Observations:

JPYINR November futures vindicated our bearish view of previous week by breaking the support of 66.50. The pair has witnessed swan dive in the week gone, now we expect slightly upward moving before swinging up.

Momentum oscillator, RSI has shown some reversal from oversold zone by inching up in last couple of days. MACD remained bearish and heading south indicating continuation of down trend. ADX line is also strengthening with –DI placed above +DI indicating continuation of bearishness.

Near term outlook for JPYINR November futures remain bearish and short covering bound in coming days will be used for make fresh short sell. The pair is having resistance around 66.50 and breaking of 65.70 will open for 65.50 and 65.10 levels.

USDJPY marked first weekly drop in five and closed below resistance of 114.50 calls for a correction, especially as a bearish Harami on the weekly and mean reversion toward 21- DMA now in sight

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