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BL Research Bureau
The rupee (INR) opened yesterday’s session lower at 71.44 versus its previous close of 71.37 against the dollar (USD). However, the local currency, after registering an intraday low of 71.48, started to advance and rallied throughout the day and closed at 71.29.
For the past two weeks, the domestic currency seems to be moving in a sideways trend between 71.2 and 71.5. It is likely to tread within these levels in today’s session.
Dollar index
The dollar index inched down yesterday, and it closed lower at 99 compared to its previous close of 99.12. But in today’s session, it has opened with a gap up and is currently trading at 99.17. The previous high of the index is at 99.66, which was made in May 2017. If the index can rally above that, it could rise to the psychological level of 100. On the other hand, if a correction ensues, 98.7 and 98.5 will act as supports.
Trade strategy
As the rupee is oscillating between 71.2 and 71.5, one can adopt a range trading strategy. Traders can either buy rupee with stop-loss at 71.65 if the exchange rate moves to 71.5 or sell rupee with stop-loss at 71 if the exchange rate moves to 71.2.
Supports: 71.5 and 71.6
Resistances: 71.2 and 71.1
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