Mtechtips MCX-SX USDINR INTRADAY trading analysis 12-05-2016

Mtechtips MCX-SX USDINR INTRADAY trading analysis 12-05-2016
MTECHTIPS :- Dollar/rupee extended losses for the second straight day, while the dollar index declined to near one-week low Thursday as investors booked profits on the greenback’s recent rally amid stronger oil prices. Dollar index, which tracks the strength of the greenback against a basket of six currencies, snapped a six-day gain to trade at 93.86 during early Asian trade compared to 94.26 at close New York time. The dollar had risen in recent days as investors moved to cover bets against the US currency. But recent hawkish comments from Federal Reserve officials led investors to cover those positions amid concerns that they were underestimating the central bank. Technically, USD-INR retraced from the day high 67.06, and tested 66.7875 before closing at 66.80 levels. A formation of long bearish candle stick on EOD chart is indicating for further correction in USDINR.Since 27 April 2016, pair has turned neutral and squeezed in a cluster of support 66.55 and immediate resistance of 67.00 (on closing basis).With that in mind, short term consolidation is expect to continued unless USDINR give either side break, any rise towards 66.90-67.00 could attract short term selling activities with stop loss above 67.30.

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