Forex Trading - USDINR February futures has double bottom support around 71

USDINR opened on a flat note but buying led USDINR upwards to end in the green. USDINR closed at 71.52 with a gain of 0.35 %.


Forex Trading News

  • Rupee ended at 71.30 a dollar yesterday, up 10 paise against its previous close of 71.40.
  • FBIL set reference rate for dollar at 71.2476 and euro at 78.2280.
  • Global Funds Sell Net INR1.85B of India Stocks Monday: NSE; Foreigners Buy Net INR14.2B of India Equity Derivatives Monday.
  • In economic news, India's IIP for Dec and CPI for Jan are due on Wednesday.
  • Yield on 6.45% bonds maturing July 2029 at 6.44%.
  • US dollar edged higher on the hopes of strong economy despite of recent contagion.
  • In economic news, JOLTs job openings for Dec will be released today.
  • FOMC chairman to testimony in front of congressional committee for two days starting today.
  • Euro weakened to fresh four month low while UK's pound also fell ahead of GDP numbers.
  • UK to release its IIP and GDP for Dec today.
  • ECB Chair Lagarde is scheduled to speak in the later part of the day.
  • Japan market shut today on account of National Foundation Day.
  • PBOC has set the Yuan reference rate at 6.9897 versus Monday's fix at 6.9863.

USDINR Fundamentals and Technicals

On the daily chart USDINR has formed a sizable bullish candle forming higher High-Low formation compare to previous session indicating positive bias. USDINR continues to move in a Higher Top and Higher Bottom formation on the hourly chart indicating positive bias. USDINR is trading below its important moving average of 20 day SMA indicating negative bias in the short to medium term.

The chart pattern suggests that if USDINR crosses and sustains above 71.60 level it would witness buying which would lead USDINR towards 71.80- 72 levels. However if USDINR breaks below 71.40 level it would witness selling which would take USDINR towards 71.20-70.90.

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 down move in the near term.

Trading strategy

BUY USDINR FUT ABOVE 71.35 ( AVERAGE AROUND 71.20-18) SL BELOW 71.13 TGT 71.44-71.57-71.70

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