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Dollar index may face resistance at 92.45 - GEPL

Investment Guru India 2018-01-10 10:21:11




Market Commentary

The dollar continued its revival from nearly four-month lows against a basket of major currencies shrugging off the recent flurry of mixed Fed commentary on monetary policy outlook. The U.S. dollar index, rose 0.25% to 92.31.

The fall in the euro came as investors took profits after its recent rally amid concerns that the European Central Bank may attempt to talk down the strengthening currency ahead of its monetary policy meeting later this month. EUR/USD was down 0.38% to 1.1922, after losing around 0.56% on Monday.

Meanwhile the Japanese yen rose after the Bank of Japan decreased the size of its bond purchases by 5%. USD/JPY was down 0.54% to 112.52 from a low of 112.50 earlier.

Elsewhere, sterling moved lower against the dollar, with GBP/USD losing 0.38% to trade at 1.3517. USD/INR open at 63.52 below the previous days closed of 63.60 and prices made an intraday low of 63.52. Bulls were on full swing prices break above the previous high of 63.64, made an intraday high of 63.87 and closed at 63.84. For the day we expect it to trade between 63.40 and 64.10 If prices sustain above 63.75 we might see prices testing 64 levels.

USDINR Technical Outlook

Observations:

* After making an bullish engulfing pattern prices closed above the four days high

* RSI and Stochastic bouncing off their support levels indicating we might see short throwback

Inferences:

* Trend to remain bearish till 64.44 is not broken on the upside

* If prices sustain above 63.75 we might see prices testing 64 levels.

EURINR Technical Outlook

Observations:

* Prices closed below eight day low and below 20 SMA(76.29)

* RSI and Stochastic heading downward indicating we might see pulling back to the support levels

Inferences:

* Trend to remain bearish till 77 is not broken on the upside

* If prices break below 76 we might see prices testing 75.54 levels

GBPINR Technical Outlook

Observations:

* Prices closed above the 20 SMA (86.14)and break above the three days high

* RSI and Stochastic indicating prices may retest their support levels

Inferences:

* Trend to remain sideways till prices did not close above 86.61

* If prices sustain above 86 we might we prices testing 86.61

JPYINR Technical Outlook

Observations:

* Prices are making lower high lower low pattern, prices break and closed above the resistance levels placed at 56.44

* RSI and Stochastic bouncing off their support levels indicating we might see short throwback

Inferences:

* Trend to remain bearish till 57.47 is not broken on the upside

* If prices sustain above 56.44 we might see prices testing 57 levels

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