Welcome back after the weekend.
We saw strong Bearish trend today in the pair USD/INR which opened at 62.31 and Closed around 62.09
The Dayhigh, 62.35 was hit soon after today’s opening and the Daylow was 62.0525
RBI is about to announce a change in Bank Interest rates tomorrow and market is anticipating another cut like last month. Do you think this is the reason for today’s bearish movement? My answer is NO.
Let us see the technical aspect:-
Friday’s (30-Jan-2015) closing LTP was 62.1875. The pair grew in Friday night session and hence today’s opening was at 62.31. Today morning, Williams %R indicator clearly showed that pair was in Overbought zone. Also another indicator with +DI, -DI values (ADX) gave the confirmation that Bears are of better strength than the Bulls. Hence Indian Rupee gained strength.
Present Support is at 62. A rate cut by RBI tomorrow will take Nifty for a rally and then USDINR can break 62 levels and check the next support at 61.7350