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USDINR October futures expected to trade with positive bias - HDFC Securities 

USDINR

Technical Observations:

USDINR near month futures closed well above downward slopping trend indicating trend reversal.

The pair has also started forming higher top higher bottom on weekly chart considered as bullish setup.

Short term moving averages are placed above medium term moving averages.

Momentum oscillator, Relative Strength Index of 14 weeks period holding well above 50 with positive cross over suggesting continuation of upward momentum.

Directional Movement Index (DMI) is also supporting bullishness as +DI placed above —DI and ADx line as placed at 24 level.

USDINR October futures expected to trade with positive bias and any dip around 74 will be considered as buying opportunities for 76 level.

EURINR

Technical Observations:

EURINR near month futures trading in downward slopping channel with resistance around 88 level.

The pair has resistance of 50 days simple moving average currently placed at 88.20.

It has been sustaining below short term and medium term moving averages.

If we closely look at last one year chart, the pair has been consolidating in the range of 85 to 91 box.

Momentum oscillator, Relative Strength Index of 14 weeks heading north with price and volume support indicating bargain buying from lower range.

Long term trend for EURINR October futures remains sideways but in near term weakness in INR could support EURINR and we can see pair retracing towards mean level.

GBPINR

Technical Observations:

GBPINR near month futures, as seen from the side chart, has been facing resistance around 104, the trend line adjoining recent highs while continue to hold horizontal trend line support around 99.50.

Though, the pair has given trend line breakout one needs to wait for higher high for confirmation of bullish trend.

The short term moving averages are placed above medium term moving averages indicating overall up trend.

Momentum Oscillators and Indicators on weekly charts are sailing north suggesting bullish momentum.

From the above technical evidences, one should wait for 104.50 level to cross before making fresh long positions. On downside breaking of 102.45, the 20 weeks moving average pushed GBPINR towards recent down swing 100.

JPYINR

Technical Observations:

JPYINR near month futures closed above Doji candlestick chart, which considered as short term reversal. However, the pair is trading well below short term and medium term moving averages.

The pair is also having downward slopping trend line resistance around 67.20. Therefore, we could see some short covering bounce in coming weeks but the trend remains bearish until it closes above trend line and 50 weeks moving average.

Momentum oscillator, RS! on weekly chart placed below 50 and drifting lower with negative cross over suggesting weak momentum.

DMI also suggesting bearish direction as —DI is placed above +DI with ADX line weakening on weekly chart. 

In short term, we see short covering bounce but the trend remains bearish and any level around 67.50 will be used to make fresh short sell with stop loss of 68.70 for target 65.50 and 65.

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