Currency market: trading ideas for 03JAN13

03 January 2013

Trading ideas for Currency market

USD/INR

Rupee is unable to retain its strength into 54.20-54.35 where MARKET PULSE urged to exit “short dollar” book and cover part of near term imports. As said, there are no major cues to provide break-out of 53.85/54.10-54.85/55.10 near/short term range. For today, let us watch consolidation at 54.25/54.35-54.50/54.60; test/break either-way to attract. The trading strategy is to trade end-to-end. Strategic players can stay away for break-out of 54.25-54.60 range for triggering trading actions. It is good to buy in 2 lots at 54.15/53.90 and sell in 2 lots at 54.55/54.80 with tight affordable stop.

EUR/USD

EUR/USD recovery from below 1.3240 lost steam ahead of 1.3285-1.3310 for sharp fall below 1.3190 into set intra-year support zone of 1.3150-1.2700 (see outlook for 2013 report) and back into lower end of set near/short term range of 1.3050/1.3100-1.3350/1.3400. Continue to stay with this range. For today, let us watch consolidation at 1.3040/1.3090-1.3190/1.3240. The trading strategy is to trade end-to-end. Strategic players can stay away for break-out of 1.3040-1.3240 for trading actions. It is good to buy in 2 lots at 1.3040/1.2990 and sell in 2 lots at 1.3240/1.3290 with tight affordable stop.

USD/JPY

USD/JPY will stay in tight consolidation mode at 86.50-88.00; no strong momentum to provide break-out either way. There is strong short term support at 85.50-86.50 which can push the pair into 90-95 soon. Till then, prefer consolidation at 85.50/86.50-88.00/89.00 before shifting into higher range at 89-94. For today, let us watch consolidation at 86.90/87.15-87.75/88.00. The trading strategy is to trade end-to-end. Strategic players can stay away for break-out of 86.50-88.00 range for trading actions. It is good to buy in 2 lots at 86.50/85.75 and sell in 2 lots at 87.75/88.25 (as counter trade) with tight affordable stop.

Have a great day ahead and Good luck.......................Moses Harding