Bullish bias remains as long as rupee holds above 71

After a minor correction, the rupee appreciated last Friday and ended the session with 0.2 per cent gain at 70.88 against the dollar. The bullish momentum in favour of rupee is sustaining and the domestic currency opened today’s session on a positive note, testing the resistance at 70.75.

Since it is trading above 71, one can continue to maintain bullish bias and the rupee will most likely move past the resistance at 70.75. Beyond that level, it could appreciate to 70.35. On the other hand, a decline from current level is expected to be limited by the support at 71, whereas weakness below that level could drag it to 71.2.

The dollar index inched past a minor resistance at 97.5 and is trading at 97.55. The immediate resistance is at 97.75 and an appreciation could weigh on the Indian currency. On the downside the index has a support at 97.35.

Technically, the bullish trend in rupee stays intact and traders can initiate intraday longs for a target of 70.35 with the support of 71.

Supports: 71 and 71.2

Resistances: 70.35 and 70