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BL Research Bureau
The rupee continues to trade in a narrow range against the dollar. After a flat open at 72.86 against the previous close of 72.88, the currency is hovering in a narrow band. So far, the day's range is 72.87 and 72.84. A decline below the immediate resistance level of 72.84 can take the rupee higher to 72.80. Subsequent hurdles are at 72.75 and 72.65. Conversely, if the rupee weakens and falls below the 72.87 it can test support at 73 which is a crucial base to note. Next supports below are at 73.11 and 73.20 levels.
Dollar index
Extending the down-move that commenced from the recent high of 91.6, the US Dollar index fell 0.54 per cent in the past session to close at 90.43 levels. The index started the session, opening at 90.49 and recorded an intraday high at 90.5 levels. But witnessing selling interest the index is weakening and tests support as well as the 50-day moving average at 90.4 levels. A strong fall below this base can pull the index lower to 90.2 and then to 90 levels. A further fall below this support can drag the index down to 89.8 levels. Resistances at 90.7 can 91 can limit the rally. Key resistance thereafter is in the band between 91.5 and 91.6.
Trade strategy
The rupee can experience buying interest at lower levels on the back of weakening dollar. Hence, traders can buy on declines with a stop-loss 72.90. A rally above 72.84 can take the currency higher to 72.80 or even to 72.75 levels.
Supports: 72.87 and 72.95
Resistances: 72.80 and 72.75
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