Mtechtips MCX-SX USDINR INTRADAY trading analysis 05-07-2016
MTECHTIPS USD-INR July Future Sell around 67.90-68.00 Target 67.55-67.25 .Stop loss above 68.25
Indian Rupee strengthened more than 1% against the dollar last week, and settled at 67.6 compare to previous week close of 68.33. A sharp gain was noted in local currency after Bank of England Governor hinted of at an interest rate cut following the surprised exit of United Kingdom from the European Union in a referendum last week, which also created a hope that other global central banks may follow easing policy to offset the slowdown in economic and as Federal Reserve was likely to further delay rate hike. Technically, a long bearish candle stick formation has emerged on USDINR weekly chart, while pair closed below the 38.2% Fibonacci retracement level of 21 Feb 2016 – 17 April 2016 fall, both of which are indicating for continuation of recent bearish move. Further, massive resistance likely to seen at 68.50 and a break above only will expect to test 68.80-69.00.