Currency market update for 22 October 2012
USD/INR: Rupee recovered from strong support zone of 53.80-54.30 and trading above immediate resistance at 53.60-53.70. The undertone is neutral but would look for bullish cues for ultimate test/break of 53.60-53.70 resistance into 53.00. The strategy to sell USD/INR in 3 lots at 53.80/54.00/54.20 with stop at 54.40 holds good. Ultra-short term imports may be covered at 53.70-53.60 given the risk of rupee weakness into 54.00-54.30 on bunched up dollar demand and limited band-width available with RBI to defend rupee. The USD Index has turned bullish into the immediate term.
EUR/USD: USD Index has held well below 79.70 (and EUR/USD above 1.3000). The intra-day outlook is mixed as current price action (and momentum) does not favour conclusive break of immediate resistance at 1.3070-1.3085 for possible extended weakness into 1.2950-1.2900. The strategy is to sell EUR/USD at 1.3065-1.3090 with stop at 1.3110 for 1.2965-1.2950 not ruling out extension into 1.2915-1.2900. In the meanwhile USD Index will get into consolidation mode at 79.20-79.90
USD/JPY: The near term consolidation has now shifted to 79-80. This currency pair is looking bid and set for extension of recent rally from 77.40 into 80.60. The strategy is to buy dips into 79.10-78.85 with stop below 78.60 for 79.95/80.45
Good luck..........................Moses Harding
A very effective trading strategy has been discussed here. Returns can be improved by knowing about market updates timely.
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