Direction is downward for the rupee

Indian rupee is gaining on expectation that lower commodity prices will translate into lower current account deficit.  Rupee is at a critical juncture where the next two weeks trend could tell us the direction till end June. 53.70 is the key support for usd/inr may futures and there will be a crash to 53.06 and 52.50. Yen may futures needs to trade over 54.06 to prevent another round of selling. We expect the rupee to gain further will prefer to use a sell on rise strategy for May futures with a stop loss of 55.75  till end may. With government hell bent on selling even national importance sectors such as telecom (proposed 100% FDI) to overseas investors among other rupee will gain. 
 

Trading strategy For the very large traders and high risk traders
  • USD/INR APRIL 2013: Sell below 54.03 stop loss 54.13 for 53.9225-53.7225
  • EURO/INR APRIL 2013: Sell on rise with a stop loss of over 71.22 for Monday
  • GBP/INR APRIL 2013: Watch 82.60 and trade accordingly
  • JPY/INR APRIL 2013: Buy if and only if jpy/inr trades over 55.0600

Chart

TECHNICAL VIEW 


US-DOLLAR – INDIAN RUPEE (USD/INR) APRIL 2013 – (CURRENT PRICE 54.0375)
Bullish over 54.0675 with 54.3025-54.6025 as price targetBearish below 53.9225 with 53.7725 and 53.5650 as price targetNeutral Zone: 53.9225-54.0675
  • 54.06 is the key support and there will be another wave of selling below 54.0600
  • Key weekly support is at 54.0600

EURO-INDIA RUPEE (EUR/INR) APRIL 2013 – (CURRENT PRICE 70.5850)
Bullish over 70.8300 with 71.2775 and 71.7625 as price targetBearish below 70.5425 with 70.2250-70.0675 as price targetNeutral Zone: 70.5425-70.8300
  • Euro/inr needs to break and trade over 70.8300 else it will fall to 70.2725-69.9025
  • We prefer a sell on rise strategy as long as euro/inr trades below 71.3200

UK POUND -INDIA RUPEE (GBP/INR) APRIL 2013 – (CURRENT PRICE 82.4850)
Bullish over 82.6975 with 83.0225 and 83.5675 as price targetBearish below 82.2225 with 82.0950 and 81.6900 as price targetNeutral Zone: 82.2225-82.6975
  • Cable needs to trade over 82.6975 to target 83.32-83.75
  • There will be another wave of selling only below 82.5650

JAPANESE YEN -INDIA RUPEE (JPY/INR) ARPIL 2013 – (CURRENT PRICE 54.9425)
Bullish over 55.0675 with 55.3025 and 56.0125 as price targetBearish below 54.4850 with 54.0975 and 54.0225 as price targetNeutral Zone: 54.4850-55.0675
  • Key long term support for May futures is at 54.06 and long as yen may futures trades over 54.06 we prefer a buy on dips strategy. 
  • Only a break of 55.0675 will resume the uptrend. 

Happy profitable trading & Trade without emotions
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these securities. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Forex involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.

RELATED TOPICS