Technical Analysis

Daily Rupee call: Buy with stop-loss at 72.3

Akhil Nallamuthu | Updated on November 19, 2019 Published on November 19, 2019

BL Research Bureau

The rupee opened higher yesterday at 71.65 versus its previous close of 71.79 against the dollar. After an initial uptick, the Indian currency started to decline from the resistance at 71.6 and closed the day lower at 71.84.

On the downside, the domestic currency has support at the key level of 72, below which it might weaken to 72.3. As we can notice, the price band between 72.3 and 72.44 (52-week low) will act as substantial support. But if the rupee appreciates, it will face resistance at 71.6 and 71.4.

The dollar looks weak, and it can be witnessed in the dollar index. The index has closed with a loss for three consecutive trading sessions and is currently testing support at 97.67. This level also coincided by the 50-day moving average. If the index breaches the support, it will fall to 97.4, below which it can even slump to 97. On the upside, 98 is a stiff resistance.

Today, the rupee opened lower at 71.95 and is trading near crucial support of 72. The support will most likely arrest further depreciation, and so one can be cautiously bullish on rupee today. Traders can go long in rupee with stop-loss at 72.3 for intra-day.

Supports: 72 and 72.3

Resistances: 71.4 and 71.6

Published on November 19, 2019
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