commodity outlook and trading ideas by Bhavik Patel - Sr. Technical Analyst (Commodities), Tradebulls.
The US Dollar Index (DXY) is trading in a bull trend above the 200-period simple moving average. DXY found support at the 50 and 100 SMA and the 97.00 figure. The level to beat for bulls is the 97.50 resistance. Indian Rupee broke 72/dollar mark at the start of the week after RBI governor’s abrupt resignation but rupee have somehow clawed back on the back of equity inflows and crash in crude oil prices. The Indian rupee has support at levels of 71.20-71.30 and if Rupee manages to sustain below that level, once again we can see rupee testing the lows of 69.70. Any further weakness in Rupee is only expected above 72.20 so as long as the rupee is trading below that level, we would recommend sell on rise.
Source: Business StandardPrevious Next