Traders can expect the USD/INR to trade in neutral with bullish bias and go long in USD/INR future at 68.7725
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As expected, a bullish trend in Indian Rupee (INR) has taken a pause and sideways movement has been witnessed in the week gone by.
As the target of Head and Shoulder pattern has already been achieved, the US Dollar (USD) was also expecting a bounce back as per technical parameters after trading in an oversold territory and eventually resulted in a pause in an ongoing bullish trend of Indian Rupee (INR).
In coming week as well, the traders can expect the INR to remain subdued with a negative bias as on daily chart USD/INR currency pair has formed “Doji” candlestick pattern at the support levels and 5 bar positive divergence in RSI is providing a further strength to the pattern.
Apart from daily time frame, the weekly chart has also formed “Doji” pattern after three consecutive red candles; which is reflecting that bulls in USD are expecting a mild depreciation in Indian currency against USD in short term and we could see the INR melting up to its 20 Day Moving Average which is placed at 69.
USD/INR weekly daily
Fundamentals and macro factors for USD can be put into a neutral trajectory.
US President in his tweet asked the aids to look for the possibilities to weaken the Dollar in order to boost the economy.
As per his tweet, Trump said “China and Europe playing big currency manipulation game and pumping money into their system in order to compete with USA."
But US Federal Reserve does not seem to be agreeing with the statement. As per St. Louis Federal Reserve Bank, the value of Dollar is not a considerable factor while setting the interest rate.
USD/INR spot weekly
Putting the entire above scenario into perspective, the traders can expect the USD/INR to trade in neutral with bullish bias and go Long in USD/INR future at CMP 68.7725 and to hedge the positions call option of 69 can be sold at 0.06.Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.The Great Diwali Discount!
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