Technically on the daily chart, the trend line is indicating an upward trend for the pair hinting a consolidation before it targets the 70 level sooner than later. The 10 day simple moving average (SMA) and 50 day SMA give a strong buy signal as the price line is much above the moving averages lines along with good volume. The momentum oscillator Relative Strength Index (RSI) is neutral at 59.85330. The Moving Average Convergence Divergence (MACD) is indicating a sell though not a strong one at 0.22703
With the weaker Asian Y* currencies, the rupee is bound to track trend and let out its steam to charter towards a new territory. The respective central banks are probably eyeing bigger picture and letting the currencies take their own direction.
It’s a matter of time before the importers who are totally un-hedged are caught unguarded and thus should partially cover when sub 68.50 levels are sighted. If the local currency falls beyond 70 to a dollar, it could drop like a hot potato further towards 72.
* Yes you guessed them right… Yuan and Yen
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