Forex trading – Trading tips for USDINR

Developments in the Forex trading market impacts INR and other currencies. Currencies get influenced by small global developments. Most Forex traders are hedgers and skilled and follow regular developments in different parts of the world. Forex trading is risk since movement is quite volatile but it is quite profitable as well.

Forex trading – Trading tip for USDINR

Development in the Forex trading market

  • JPYINR trading range for the day is 64.57-65.
  • Yen gained against the dollar as the spread of a pneumonia-like virus in China sparked a sudden bout of risk aversion.
  • The yen remained higher after the Bank of Japan kept its short-term interest rate target at minus 0.1%
  • Support also seen as Bank of Japan pledge to guide 10-year government bond yields around zero

  • EURINR trading range for the day is 78.95-79.34.
  • EURINR settled up while traded within a tight range as lack of influential eurozone data kept the euro on an even keel as well.
  • Eurozone economic data has been greatly improved in recent weeks, suggesting that the ECB may not need to ease.
  • ECB President Christine Lagarde has pledged that the January meeting will commence the ECB’s formal policy review

  • GBPINR trading range for the day is 91.89-93.65.
  • GBPINR is advancing trying to recover the losses incurred at the end of last week after strong economic data
  • UK wages’ growth came in better than anticipated in the three months to November.
  • Speculative interest needing clearer clues about the future relationship between the UK and the EU.

  • USDINR trading range for the day is 71.12-71.36.
  • Rupee dropped mirroring weak global cues after the IMF lowered its global growth estimate for 2020
  • Pressure also seen as China reported fourth death following the outbreak of a new coronavirus.
  • IMF cites a slowdown in local demand and concerns in the non-bank financial sector

Technical & fundamental of USD INR

USDINR opened with an upward gap and remained in positive terrain throughout the day. USDINR closed at 71.25 with a gain of 0.11 %.

On the daily chart USDINR has formed a small bullish candle forming higher High-Low formation compare to previous session indicating positive bias. USDINR is moving in a Higher Top and Higher Bottom formation on the hourly chart indicating short term 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 crosses and sustains above 71.30 levels it would witness buying which would lead USDINR towards 71.50- 71.70 levels. However if USDINR breaks below 71.10 level it would witness selling which would take USDINR towards 70.90-70.70.

The daily strength indicator RSI and momentum oscillator Stochastic both are in positive territory which supports upside strength

Trading strategy

Buy USDINR at 71.23-71.22 TGT 71.35 Stoploss 71.13

Read disclaimer before investing

Forex trading tips
Forex Trading

Post a comment