Forex trading - USDINR trading range for the day is 71.18-71.45.

Last week, Indian Rupee depreciated by 0.35 percent while the Dollar Index rose by 0.17 percent. In January 2020 the foreign investors sold net $1.58 billion of Indian debt. The funds flow coupled with the month end Dollar demand led to the depreciation in the Rupee. The IMF on Monday slashed India’s growth forecast by 1.3 percentage points to 4.8% for 2019-20, prompting the agency to also trim its global growth estimates as a result. 
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Forex Trading News 

  • Rupee ended at 71.33 a dollar on Friday, down 7 paise against its previous close of 71.26.
  • FBIL set reference rate for dollar at 71.2404 and euro at 78.6902.
  • Forex Reserves +$943M to $462.2b in Week Ended Jan. 17.
  • Global Funds Buy Net INR6.59b of India Stocks on Jan. 24: NSE; Foreigners Sell Net INR13.3b Indian Equity Derivatives Jan. 24.
  • Yield on 6.45% bonds maturing July 2029 at 6.60% on Jan. 24.
  • US dollar edged higher against a basket of currencies on the concerns of virus outbreak.
  • In economic news, US new home sales is due in the later part of the day.
  • US central bank to meet on Jan 29-30 for their monetary policy decision.
  • Euro slipped to eight week low after weak PMI numbers while UK's pound waited BoE meeting this week.
  • BoE to meet this Thursday for its interest rate decision meeting.
  • Japan’s yen rose to the highest level in nearly three weeks against the dollar as investors seek haven assets following an increase in the number infected from the coronavirus.
  • According to sources, China's Lunar holiday extended till Feb 02 from Jan 30.

Fundamentals and Technicals

USDINR opened with an upward gap and witnessed selling for most part of the session. However last hour pullback action pulled USDINR higher to close on flat note. USDINR closed at 71.34 with a gain of 0.06 %.

On the daily chart USDINR has formed a small Bearish candle forming higher High-low 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 71.40 level it would witness buying which would lead USDINR towards 71.60- 71.80 levels. However if USDINR breaks below 71.20 level it would witness selling which would take USDINR towards 71-70.80.
The daily strength indicator RSI is moving upwards and above its reference line indicating positive bias. However momentum oscillator Stochastic has turned negative from the overbought zone indicating a possible consolidation or a downmove in the near term

Forex Trading tip

On The daily chart USDINR Fut closed flat giving a small doji candle close, prices can trade in range of 70.90- 71.55. Thus supports are placed at 70.90-70.70. 71.40-71.55 will keep acting as new supply points.

Overall prices can be in range of 70.75-71.55. Technical Indicator MACD is showing signs of trend to be sideways to positive for few sessions, For the day it can be in a range of 71.26-71.45 below 71.26 shorts can be seen towards 71.16 & above 71.40 rally towards 71.50 can be seen.

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