USDINR-Weekly Outlook-Venkat's BlogPast week saw an unexpected selling towards 82.05 which gave opportunity for the importers to hedge partly and the pair later closed at 82.31. The Monthly candle still shows a bearish candle. We need to see a daily close below 81.70 for further lower levels. This month being the year end it appears less likely that we may see lower levels. Most likely scenario would be a consolidation between 81.70 and 83.10. There could be choppy moves within this range. A close outside this range requires re-assessment of risk/direction and target.
A few more observations:
The currency corrected after making multiple attempts to break 83
Dollar Index-DXY is likely to continue the familiar range of 101-105.
The raising upward channel indicate the broader range of 77.10-83.30
As noted in the previous blog, continue to keep the following input for quick reference.
The 82.75-83.25(with error adjustments) zone is the Fib projection of July 2011 to July 2013. Hence, the importance. If breached, we may see another spike towards 85.70.
o Will this range be protected for one more time? We may get further clues by the end of this week
o The increased volatility and wild swings likely to continue
Disclaimer: The views expressed here are personal and not connected to SYFX Treasury Foundation. The views are for learning and reference purpose only.
