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BL Research Bureau
Last session, the rupee (INR) managed to close at 74.46 against the dollar (USD) amid volatility. The local currency opened the session on a flat note at 74.48. The day range for the currency is 74.41 and 74.52. It is currently trading at the upper end of the range, appreciating marginally. A conclusive rally above 74.25 can push the price higher to 74.15 and thereafter to 74.0 in the near term. But, if the currency fails to move beyond 74.25 and declines below the immediate support level of 74.50, it can decline to 74.6. Next supports area t 74.75 and 75.0.
Dollar index
The dollar index has closed the last session at 92.43, declining by 0.22 per cent. After a flat open at 92.44, the index is declining to witness selling interest. It trades well below the 21-day moving average that has limited the upside at around 93 in the past week. Moreover, the key level of 93 is a strong near-term resistance to note. A strong rally above this level can push the index higher to 93.5 and 94 levels. On the downside, a fall below the immediate support level of 92.2 can drag it lower to 92 in the coming trading sessions.
Trade strategy
As the domestic currency shows strength on the back weak dollar index, it is likely to appreciate today amidst choppiness. A rally above 74.25 can take the price higher to 74.15 and then to 74.0. Traders can go long above 74.25 levels with a fixed stop-loss.
Supports: 74.50 and 74.60
Resistances: 74.25 and 74.15
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