Daily rupee call: Rupee gains bullish momentum

The rupee started the week on a marginally positive note, opening at 72.58 against the dollar to the previous close at 72.65 levels. This opening level being the day’s low and the key resistance at 72.60 turning into a key support, the currency began to gain momentum and continued to rally, breaching a vital resistance at 72.40 levels.

The rupee is trading in the range of 72.58 and 72.33 for the session with a positive bias. A further rally above 72.30 can take the currency higher to 72.15 and then to 72.00 levels in the ensuing trading sessions. On the other hand, a slump below the immediate support level of 72.60 can pull the rupee lower to 72.65 and then to 72.70 levels.

Next key supports are placed at 72.80 and 78.90 levels. A decisive fall below 72.80 can drag the currency lower to test the significant support level of 73. Subsequent supports to note are at 73.11 and 73.20 levels.

Dollar index

The dollar index has started the session on a marginally negative note, opening at 90.34 against the previous close at 93.36. Key support at 90.25 is cushioning the index and it bounced up testing this level. The day's high is 90.38. A strong rally above the key near-term resistance level of 90.5 can take the index higher to 90.7 and then to 91 levels. The supports below 90.25 are at 90.10 and 90.

Trade strategy

Gaining bullish momentum, the rupee has surpassed the key resistance level of 72.40. Keeping this level as base, traders can go long on the currency, with a stop-loss at 72.45 levels. A rally above 72.30 can test resistances at 72.15 and then 72 in the coming trading sessions.

Supports: 72.40 and 72.60

Resistances: 72.30 and 72.15