Technical Analysis

Daily Rupee call: Rupee could witness intra-day decline

Akhil Nallamuth | Updated on June 11, 2020 Published on June 11, 2020

The rupee (INR) opened Thursday’s session lower at 75.8 versus its previous close of 75.59 against the dollar (USD). The local currency has thus slipped below support at 75.6, opening the door for more weakening.

On the downside, immediate support can be spotted at 75.8, below which the support is at 76. But if the rupee strengthens and moves above 75.6, it might appreciate to 75.3. Above that level, resistance is at 75.15.

Yesterday, the rupee closed flat even as Foreign Portfolio Investors (FPI) were net sellers. The net outflow stood at nearly Rs 920 crore (equity and debt combined).

Dollar index

Extending the downtrend, the dollar index declined yesterday and closed at 96.17 versus its previous close of 96.46. In today’s session, the index bounced off the support at 96. If the support holds, it might appreciate towards the nearest hurdle at 97.

Trade strategy

The Indian currency began the session below support at 75.6; while the rupee stays below that level, it can be bearish. So, traders can initiate rupee short positions on intra-day rallies, with stop-loss at 75.6.

Supports: 75.8 and 76

Resistances: 75.6 and 75.3

Published on June 11, 2020

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