Mtechtips MCX-SX USDINR INTRADAY trading analysis 22-07-2016
MTECHTIPS Dollar/rupee and the dollar index traded little changed Thursday on lack of fresh triggers even as investors await the European Central Bank policy outcome later today. Later in the day, European Central Bank is set to give its first verdict on euro area monetary policy since the Brexit decision. The dollar fell as investors across the globe booked profits taking advantage of a four-month rise in the dollar index. The dollar hit its highest level in four months after a strong US data boosted expectations that the Federal Reserve will increase rates in coming months. The ECB meeting comes a week after the Bank of England, headed by Carney, opted not to cut rates in the immediate wake of the UK’s vote to quit the European Union, instead signalling that it will probably ease in August. Technical, USDINR remained range bound for second consecutive day and settled at 67.26, up by 0.10%. On the EOD chart, pair failed to break its immediate resistance of 38.2% Fibonacci Retracement which creating probability for pull down towards 67.00-66.95 again. However, a break above 67.35 on closing basis could result in positive move towards 67.58-67.75.