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BL Research Bureau
The rupee (INR) started the session with a gap-down at 73.18 that is opening below the support of 73.00 against the dollar (USD). But, the currency marked the intraday low at 73.1875 and started to recover. It has moved above the key support level of 73.00 and registered an intraday high at 72.92, witnessing buying interest.
Dollar index
The dollar index had recently breached a key resistance level of 91 and continues to trade well above this level. The near-term outlook is now bullish for the index. It has begun the session on a flat note, opening at 91.98 and trades sideways at around this level. Key resistance is at 92. A strong rally above this level can take the index higher to 92.5 and then to 93 in the coming trading sessions. Significant supports are placed at 91.5 and 91 levels.
Trade strategy
Although the dollar index is flat, the rupee is gaining bullish momentum despite a gap down open. The rupee faces resistance ahead at 72.80 and then 72.70 levels. The next vital resistance is in the 72.60-72.50 band. If the key support level of 73 holds, then the currency can test resistance at 72.80 levels in the near term. Traders can buy the currency on decline with a stop-loss at 73.0.
Supports: 73.00 and 73.15
Resistances: 72.80 and 72.70
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