Mecklai Graph: Will Rupee find its lost ground?
Mecklai graph of the day: USDINR touched a high of 57.3350 on 22nd June 2012. Growing European debt crisis fueled global risk aversion while weak domestic fundamentals coupled with policy paralysis aided sharp rupee depreciation.
July 02, 2012 / 16:54 IST
Mecklai graph of the day: Will Rupee find its lost ground?
June has been a volatile month for Indian Rupee. USDINR touched a high of 57.3350 on 22nd June 2012. Growing European debt crisis fueled global risk aversion while weak domestic fundamentals coupled with policy paralysis aided sharp rupee depreciation. However, EU summit provided some respite to the pair, witnessing a free fall of Rs 1.20 from its previous close of 56.82 and made a low of 55.62.As shown in the above charts, the pair is holding the strong support of 5 weekly EMA since last sixteen trading session and currently the 5 weekly EMA support can be seen at 55.68. With all major stochastic being in the oversold region, the pair is expected to take strong support at 55.68.The recent bullish trend of pair posting a weekly close above its 5-weekly EMA has been marginally breached in the previous week. Now with positive cues from Euro zone and favorable monsoon can we expect Rupee to find its lost ground?As long as the weekly closing of the pair is below its 5EMA, the bias would remain towards soft Rupee appreciation. However a weekly close above 55.68 would negate the above view and change the bias for the pair on upside.The below chart depicts the weekly movement of USDINR since December 2011.
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