Technical Analysis

Daily Rupee call: INR likely to weaken further

Yoganand D | Updated on November 17, 2020

Supports are at 74.50 and 74.60, and resistances at 74.35 and 74.25

BL Research Bureau

The rupee (INR) closed at 74.60 against the dollar (USD) on Friday. Testing the key support level of 74.60 the domestic currency has opened on a positive note at 74.43 in today’s session and continues to appreciate. The contract is trading in the range of 74.38 and 74.45 today. The INR has to rally above the immediate resistance level of 74.25. A strong rally above this level can pave the way for an up move to 74.15 and then to 74.0 in the ensuing trading sessions. On the other hand, a slump below the immediate support level of 74.60, the contract can decline to 74.75 and then to 75.0 levels.

Dollar index

After encountering a key near-term resistance at 93, the dollar index began to decline. The 21-day moving average had capped the rally in the index. The index is hovering at 92.5. An immediate supports are at 92.2 and 92. A slump below these base can pull the index lower to 91 and then to 90 over the short term. Key resistances are at 93 and 93.5. A decisive rally above 93 can bring back bullish momentum and take the index higher to 93.5 and 94 levels.

Trade strategy

Thought the rupee has started the session on a positive note but now deprecated slightly to 74.47 levels and tests support at 74.5. A fall below this base can pull it down to 74.6 and then to 74.75. Thereafter, the trader can go short on a decline below 74.5 with a fixed stop-loss. Resistances are at 74.35 and 74.25 levels.

Supports: 74.50 and 74.60

Resistances: 74.35 and 74.25

Published on November 17, 2020

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