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The rupee (INR) gained on Monday against the dollar (USD), bouncing from the support at 71.4. Yesterday, it closed at 71.29, after registering an intra-day low of 71.43.
If the rupee can maintain the upward momentum, the nearest hurdle it will face is at 71.2 and 71.1. But if the local currency weakens, 71.4 will act as a support. Below that level, the support can be spotted at 71.5.
Dollar index
The dollar index continued to surge, and on Monday it breached a resistance at 98.7. The bull trend in the index seems to be gaining strength. The immediate resistance is at 99.15, above which 99.5 can act as a considerable resistance. On the other hand, if the index undergoes correction, the support levels are at 98.7 and 98.5.
Trade strategy
Despite the bull trend in the dollar index, the rupee managed to gain ground in yesterday’s session. This could be an indication of good demand for the local currency. Hence, traders can buy the rupee on declines, with stop-loss at 71.45
Supports: 71.4 and 71.5
Resistances: 71.2 and 71.1
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