Forex Trading - Indian Rupee appreciated by 0.35 percent

Yesterday, Indian Rupee appreciated by 0.35 percent while the Dollar Index rose by 0.06 percent. In January 2020 the foreign investors sold net $1.58 billion of Indian debt.

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Traders wait for the first U.S. Federal Reserve’s meeting in 2020 which is scheduled for 28th-29th January’20. US December New Home Sales were down by 0.4% monthly basis, well below the 1.5% advance expected.

USDINR opened on a flat note but selling led USDINR downwards to end in red. USDINR closed at 71.36 with a loss of 0.13 %.

Forex Trading News 

  • Jan month Currency F&O expiry due today.
  • Rupee ended at 71.31 a dollar yesterday, up 12 paise against its previous close of 71.43.
  • FBIL set reference rate for dollar at 71.3948 and euro at 78.7290.
  • Global Funds Sell Net INR13.6b of India Stocks on Tuesday: NSE; Foreigners Sell Net INR20.5B of India Equity Derivatives Tuesday.
  • Yield on 6.45% bonds maturing July 2029 at 6.58% on Jan. 28.
  • US dollar edged higher on safe haven demand led by the Chinese uncertainty.
  • On the data front, US durable goods orders beat forecast while initial and continuing jobless claims to be released tomorrow.
  • US central bank to meet on Jan 29-30 for their monetary policy decision.
  • Euro was steady while UK's pound waited the region's central bank policy decision.
  • BoE to meet this Thursday for its interest rate decision meeting.
  • Japan’s yen traded little changed as a rally in U.S. equities signalled risk appetite is improving amid efforts to contain the coronavirus.
  • According to sources, China's Lunar holiday extended till Feb 02 from Jan 30.

Forex trading - USD INR

Rupee settled flat as investors focused on the economic fallout from a new coronavirus in China, though broader market sentiment stabilised. Gains remained limited as weakening risk appetite may cause FPIs to pull out of emerging markets like India on concerns over economic damage caused by China's coronavirus.

On the daily chart USDINR has formed a sizable Bearish candle forming lower High-low compare to previous session and has closed below previous session's low indicating negative bias USDINR is moving in a Higher Top and Higher Bottom formation on the daily chart indicating sustained up trend. USDINR is trading below 20 and 50 day SMA's which are important short term moving averages, indicating negative bias in the short to medium term

The chart pattern suggests that if USDINR breaks and sustains below 71.20 level it would witness selling which would lead USDINR towards 71-70.80 levels. However if USDINR crosses above 71.40 level it would witness buying which would take USDINR towards 71.70-71.90.

Trading tip - Sell USDINR @ 71.3350 SL 71.45 TGT 71.13 

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