EUR/USD is unable to take out strong resistance at 1.3065-1.3090 (high at 1.3083) and in consolidation mode around 1.3050. USD Index too is mixed at 79.40-79.70. It is possible that Euro extends its gains into 1.3145-1.3170 while 1.3010-1.2985 stays firm. The strategy is to play end-to-end between 1.3010-1.3145 with extension limited to 1.2985-1.3170. There are no strong cues to suggest break-out either-way.
USD/JPY has now completed end-to-end of 79-80 range and looks good for extension into 80.50-80.65 to complete recent rally from 77.40. For the day, watch 79.50-80.50 with extension limited to 79.25-80.75. The strategy is to buy at 79.50-79.25 for 80.50-80.75.
USD/INR has met the first objective at 53.40-53.30 (low at 53.34) from the set sell zone of 53.80-54.30 (high so far at 53.98). Ideally, should now get into consolidation at 52.90-53.40 with bias into lower end tracking gains in Euro into 1.3140-1.3170. It would be confirmed that as rupee gains below 52.20 was excessive on bunched up dollar supplies from the forward segment, rupee weakness above 53.30 is also excessive on bunched up dollar demand from PSU entities. Till move into the next round of reforms post winter session and RBI’s shift into growth supportive monetary stance, consolidation in rupee at 52.20-53.30 will be in order. The strategy is to add to “shorts” entered above 53.80 at 53.40-53.65 for next objective at 53.00-52.90.
Good luck.........................Moses Harding
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