EUR-INR TIPS for 28 Aug. to 1 Sep. week 2017
Euro rupee future this week closed at 75.49 with flat loss. This was third weekly loss for euro after previous 3 weeks gains. This week euro rupee future hit low at 75.22 and high was 75.77, total 0.5 rupee range and flat negative closing on consolidation phase. In last 3 weeks euro stuck in narrow range and look like building base before moving upside.
Euro rupee weekly chart setup showing, trend and momentum both are bullish. Prices are continuously testing week’s average level of 74.3. Below that, on downside 73.62 is 20 weeks average and 73 is 50 weeks average level support. On this chart, RSI is at 66 with fresh bearish divergence is formed. Weekly MACD is with bullish crossover but showing early topped out patterns.
Euro rupee future for august 2017 opened strong and holding above 75 rupee support zone with bullish outlook. And this week we saw high up to 75.91 and on downside euro testing 75 rupee support multiple time which is good sign for buyers.
For next week, euro rupee future above 75 rupee will remain buy on dips. On upside my august series bullish target zones are 76.5 and then 77.4. So traders hold long positions for these targets and follow buy on dips strategy above 75 rupee for month of august.
Daily chart set up showing, euro is in strong uptrend with strong bullish momentum. Euro rupee daily chart, prices taking multiple supports at 20 days average and moving away which is strong bullish sign and now hovering around 5 days average level. On downside 74.3 is 50 days average level. On this chart, RSI level is now 57 and flat bearish. MACD is above zero but with bearish crossover and forming bottom.
From long term view, euro rupee future hit 2017 bearish target of 68.7 and had taken support at that level and was bouncing back towards 73.3 resistance zone and given bullish breakout above it for long term targets 76 and 80.7 rupees. 3 weeks back we saw high of 76.19 rupees and euro rupee future achieved my 2017 first bullish target of 76 rupee now will head for next long term target of 80.7 rupee.
In last 7 months, euro rupee future given 3 negative closing and then recovery rally and given 4 positive monthly closing. Euro made 2017 bottom at 68.2 and now heading higher with strong buying momentum. This month move suggesting correction and downside for euro.