A massive fall in local equities | toll on the currency market sentiment | Technical recommendations | USDINR | EURINR | GBPINR | JPYINR | Indianotes.com


Market Stance

 

Indian rupee tank sharply in the week gone by and fell towards 6.5 month low against the dollar amid concerns over foreign capital outflows. A massive fall in local equities amid heightened global volatility took its toll on the currency market sentiment as global funds dumped Indian assets amid rising expectations for an imminent US interest rate hike. US Fed chief Janet Yellen, in a speech, said that the Federal Reserve should stick to gradual rate hikes despite the uncertainty about the inflation trajectory. Moreover geopolitical tensions in East Asia heightened after North Korea’s foreign minister said on Monday that US president Donald Trump’s recent remarks are a declaration of war and that Pyongyang has the right to take countermeasures, including shooting down US aircraft. In overseas market firm dollar against the major pairs also dampen sentiment for local unit.


Technical Recommendation


USD/INR

 

USD/INR (OCT) contract closed at 65.75 on 27th September’17. The contract made its high of 65.72 on 27th September’17 and a low of 64.76 on 25th September’17 (Weekly Basis). The 14-day Exponential Moving Average of the USD/INR is currently at 64.74.


On the daily chart, the USD/INR has Relative Strength Index (14-day) value of 81.31. One can buy around 65.40 for the target of 66.20 with the stop loss of 65.00


GBP/INR


GBP/INR (OCT) contract closed at 87.97 on 27th September’17. The contract made its high of 88.24 on 26th September’17 and a low of 87.65 on 25th September’17 (Weekly Basis). The 14-day Exponential Moving Average of the GBP/INR is currently at 86.63.


On the daily chart, GBP/INR has Relative Strength Index (14-day) value of 79.30. One can sell below 87.55 for a target of 86.65 with the stop loss of 87.95.


EUR/INR

 

EUR/INR (OCT) contract closed at 77.30 on 07th September’17. The contract made its high of 77.46 on 25th September’17 and a low of 77.08 on 26th September’17 (Weekly Basis). The 14-day Exponential Moving Average of the EUR/INR is currently at 77.03.


On the daily chart, EUR/INR has Relative Strength Index (14-day) value of 59.96.One can buy above 77.60 for a target of 78.65 with the stop loss of 77.05.


JPY/INR


JPY/INR (OCT) contract closed at 58.36 on 27th September’17. The contract made its high of 58.54 on 26th September’17 and a low of 57.71 on 25th September’17 (Weekly Basis). The 14-day Exponential Moving Average of the JPY/INR is currently at 58.21.


On the daily chart, JPY/INR has Relative Strength Index (14-day) value of 51.59. One can sell below 58.15 for a target of 57.45 with the stop loss of 58.50

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