Hello everyone,
Hope you are doing good! Today we will be discussing the USDINR expected movement in the coming weeks.
After a prolonged range bound price action from 83.00 to 82.40 levels, USDINR managed to break down and trend downward. Last Friday, a combination of corporate Dollar flows, bunched-up selling from exporters, and stop-loss selling from speculators drove the pair below 82.00. In the offshore, USDINR is trading near 81.70 levels on spot reference. Immediate support is near 81.70 which act as S1, but unless RBI steps in, it is unlikely that support will hold. If the support breaks we can see 81.30/40 levels which is S2. Financial year-end exporter selling and speculative short interest can drive the pair towards a more meaningful support zone near 81.00 levels on spot. In the past, RBI had shown enough interest to build reserves near 81.00 levels.
On the Upside we expect USDINR to face resistance on 82.10/15 levels which acts as R1 and next R2 would be near 82.40/50 levels. Now what can happen next?
Will it continue to depreciate or can bounce back to 82.20 or 82.50 levels? Well, this we can conclude from the technicals. Taking other parameters into consideration, RSI is at 19.14 level, Stochastic RSI is about to show a cross at 0.7266 level and MACD is also showing a continuous fall in its momentum.
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