USDINR opened with an upward gap and remained in positive terrain throughout the day. USDINR is moving in a Higher Top and Higher Bottom formation on the daily chart indicating sustained up trend. Currently USDINR is sustaining above its 20 and 50 day SMA which support bullish sentiments in near term.
Forex Trading News
- Rupee ended at 71.98 a dollar yesterday, down 34 paise against its previous close of 71.64.
- FBIL set reference rate for dollar at 71.5899 and euro at 77.2522.
- Global Funds Sell Net INR11.6B of India Stocks Monday: NSE; Foreigners Sell Net INR11.9B Indian Equity Derivatives on Monday.
- Yield on 6.45% bonds maturing July 2029 at 6.36% on Feb. 24.
- US dollar edged higher against a basket of currencies on the spread of deadly virus.
- In economic news, consumer confidence data is due today.
- Euro fell against USD while UK's pound slipped towards three month low.
- Japan’s yen to take cues from BoJ operations and the news regarding coronavirus.
- PBoC fixes USD/CNY reference rate at 7.0232 against previous fix of 7.0246.
Forex Trading - USDINR
USDINR closed at 72.02 with a gain of 0.51 %. On the daily chart USDINR has formed a bullish candle forming higher High-Low formation compare to previous session indicating positive bias.
The chart pattern suggests that if USDINR crosses and sustains above 72.10 level it would witness buying which would lead USDINR towards 72.30- 72.50 levels. However if USDINR breaks below 71.80 level it would witness selling which would take USDINR towards 71.50-71.20. The daily strength indicator RSI and momentum oscillator Stochastic both are in positive territory which supports upside strength
USDINR March futures formed bullish candle after Doji candlestick indicating bullishness.
Momentum oscillators given positive cross over and heading northbound indicating continuation of upswing.
The pair is having resistance at 72.70 and support around 71.50
Trading Strategy
Buy USDINR at 71.87-71.86 TGT 72 Stoploss 71.76
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