Daily Currency Outlook

RupeeDollar/Rupee 

The Indian rupee extends losses for the second straight day Tuesday on dollar demand from oil importers in a truncated weak, while bond yields traded mixed on profit booking by nationalized and private banks amid growing optimism of a rate cut by the central bank at policy review next month.

USDINR witnessed 0.22% recovery from the day low 66.52 and settled at 66.73 levels.  Pair remained above the previous swing low of 66.47, and formed like morning doji candle stick on EOD chart. 

In near term 66.90 will act as a strong resistance and sustain trade above only will expect to test 67.20 and above, else pair may trade in consolidation mode in between 66.55-66.90 before next big move.

 

EUR

Euro extended fall for the third straight trading session Tuesday after Belgium’s capital Brussels was rocked with two explosions hitting the city’s main airport and the Maelbeek metro station and killing at least 10 people and injuring several others.

Intraday price action resulted in formation of long bearish candle stick on EOD chart which is indicating for bearishness in EURINR and its expected that any short term rise could attract 75.00-75.10 could attract huge selling pressure.

with stop loss above 75.25. Target 74.70-74.45.

 

 

Great British Pound

Pound extended fall Tuesday after comments from Federal Reserve officials hinted at an imminent rate hike as early as April. Pound also weakened after two explosions rocked in Brussels airport and another explosion was reported at a metro station.

Sell strategy given below 95.65 was successful with pair drop towards second target 95.20.  A rectangle pattern is under construction on EOD chart, and a break below 95.20 will give confirmation for the decent fall in GBPINR. 

On the other hand, failure of the breakdown only could create probability for pullback towards 95.45-95.80 again.

Japanese Yen

Yen remained flat for the third day Tuesday as global risk appetite increased tracking the rebound in oil prices even as comments from Federal Reserve officials indicated earlier-than-anticipated rate hike in the US.

JPYINR retraced from the day high 59.9825, and settled at 59.7450 levels. Sell strategy given around 59.90-60.00 was initiated and hit first target 59.65.

 Intraday price action resulted in formation of high wave candle stick which is indicating for bullish trend reversal in JPYINR. 

On the other hand, sustain trade above 60.20 only could expect to test 60.80-61.00.

  • Major Economic Data & Events Schedule today
Time Currency Economic Indicators Forecast Previous Possible Impact
Tentative EUR German 30-y Bond Auction 0.77|1.6
6:10pm EUR German Buba President Weidmann Speaks
6:30pm USD FOMC Member Bullard Speaks
7:30pm USD New Home Sales 512K 494K Positive
8:00pm USD Crude Oil Inventories 2.5M 1.3M Positive

 

 

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