Mtechtips MCX-SX USDINR INTRADAY trading analysis 12-07-2016
MTECHTIPS Dollar/rupee ended at over three-week low Monday on likely overseas funds inflow into local shares tracking higher risk appetite in global markets after robust labour market data from the world’s largest economy. Importers are expected to continue hedging their future payables as dollar has weakened considerably against the Indian currency. Dollar weakened on lower safe-haven bets as investors moved to riskier assets on waning fears of slowdown in the world’s largest economy after robust non-farm payroll figures and also after Japan hinted of more stimulus.Technical, USDINR broke the its crucial support 67.50 which coincided with 50% Fibonacci Retracement of its previous short term rally and settled at 67.2825 levels. On the hourly chart, pair forming like Head & shoulder pattern which is indicating for bearishness in USDINR and breakdown of neckline support is aiming for the target 66.85-66.70 in days to come.
Hence, sell around 67.35-67.40. Target 67.00-66.85. Stop loss above 67.55