Forex trading – USDINR trading strategy for 21st Jan 2020

I believe 2020 is a year for Forex trading and so starting this year I would be sharing a USDINR strategy every week. Forex trading is influenced by lot of factors and provide you with a clear picture of economy’s growth.

Forex Trading - Generatebucks
Forex Trading - Generatebucks

Forex trading update

In the trading sessions yesterday Rupee ended at 71.11 a dollar, down 15 paise against its previous close of 71.08. INR is seen struggling to recover in past few sessions.

Looking at other developments

  • FBIL set reference rate for dollar at 71.0436 and euro at 79.1374.
  • Global Funds Buy Net INR58.7m of India Stocks on Monday: NSE; Foreigners Sell Net INR4.81b of India Equity Derivatives Monday.
  • Yield on 6.45% bonds maturing July 2029 at 6.64% on Jan. 20.
  • US markets to remain close yesterday on account of martin Luther King Jr. Day.
  • Canadian Dollar edged higher led by higher oil prices.
  • Euro traded steady waiting decision from central banks' while UK's pound came under pressure on hard Brexit tensions.
  • ECB to meet for its interest rate decision meeting on Thursday.
  • Japan’s yen traded near eight month high ahead of BoJ meeting outcome.
  • BoJ began its monetary policy meeting yesterday while the decision is expected today.
  • PBOC has set the Yuan reference rate at 6.8606 versus Monday's fix at 6.8664.

Technical charts and Forex trading tips

On The daily chart USDINR Fut closed flat to positive giving a small green candle close, prices can be taking basing range near 70.90-71.40. Thus supports are placed at 70.90-70.70. 71.30-71.50 will keep acting as new supply points.
Overall prices can be in range of 70.75-71.400. 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 71.05-71.29 below 71.04 shorts can be seen towards 70.920 & above 71.29 rally towards 71.42 can be seen.

Forex trading strategy – USDINR

SELL USDINR FUT BELOW 71.16 ( AVERAGE AROUND 71.30-32) SL ABOVE 71.38 TGT 71.05-70.90-70.75

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Forex Trading - Generatebucks
Forex Trading - Generatebucks

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