USDINR weekly tips 12 to 16 may 2014
USDINR daily chart technical analysis
USDINR spot on last trading session closed at 59.85 with loss. On daily chart, dollar is in downtrend against Indian rupee. Prices are trading below short term averages with bearish divergences on indicators. On chart, 60.25 is 1-month average and first resistance and 60.75 is 3-month average and major short-term trend resistance. On downside, 59.8 and 59.45 are support zones for next week. Indicators patterns are bearish but hovering near oversold zone so bounce back is due ahead.
Traders here expect technical bounce back up to 60.25 to 60.6 which can be used for creating fresh shorts with stop loss above 60.8 and for targets 59.8 and below.
USDINR weekly chart technical analysis
USDINR spot this week closed with loss. This was second week of losses for US dollar. Pair is trading below 6 and 12 month averages and heading towards 24-month average level. From medium to long-term view, dollar trend is still bullish but going though, deep correction phase on account of continues profit booking. On upside 60.25 is 12-month average level and first resistance on weekly chart. Above it 60.95 is 6-month average and next resistance. On downside, 59 and 57.85 are support zones. 57.85 is 24-month average level and major support for this dollar uptrend. Weekly chart indicators patterns are bearish and suggesting downside for prices on supply pressure.
Medium term traders below 60.3 on weekly closing basis stay shorts with strict stop loss for targets 59 and 57.85 in next 1 to 3 months.