Technical Analysis

Daily Rupee call: Go long on dips with stop-loss at 71.5

Akhil Nallamuthu BL Research Bureau | Updated on December 06, 2019

File photo   -  Bloomberg

On Thursday, the rupee (INR) gained throughout the session and closed at 71.29 against the dollar (USD). The Indian currency has breached the resistance at 71.4 and it is most likely to advance on Friday.

The immediate resistance is at 71.2, above which 71 will be a key level to watch. On the other hand, if rupee weakens, 71.4 will now act as a good support. Below that level, 71.6 is a strong support.

The dollar index continued its decline and it had closed in the red for the past five consecutive trading sessions. The index has closed below the support at 97.4 and it is currently trading at 97.34.

The support can be spotted at 97, which is a key level, as a break below that level could intensify dollar selling. The index has its resistances at 97.4 and 97.67.

The momentum is in favour of the domestic currency and most probably it will gain in Friday’s session. It has opened at 71.26 on Friday and as the trend is bullish for the rupee, dips can be used to initiate long positions. Place stop-loss at 71.5.

Supports: 71.4 and 71.6

Resistances: 71.2 and 71

Published on December 06, 2019

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