In today’s session also, the rupee started on almost flat note against the dollar, opening at 72.81 against the last session’s close at 72.84 levels. But immediately it moved above the key resistance level of 72.80 and recorded an intraday high at 72.65.
Although the currency gave away some of its intraday gains, the day’s bias continues to be upwards. The rupee is trading in the range of 72.82 and 72.65 for the session.
Currently, it is trading at around 72.74. A rally above the key resistance level of 72.70 can take the currency higher to 72.65 and then to 72.60 levels. Key supports at 72.80 and 72.84 can provide base in the near term. A further decline below the base level of 72.87 can witness a down-move to test next support at 73 which is a significant support level. Thereafter supports are at 73.11 and 73.20 levels.
Dollar index
With the near-term trend being down, the dollar index continues to test the 50-day moving average at around 90.3 over the past three sessions. A fall below the immediate support level of 90 can 90.2 can pull the index lower to 90 and then to 89.8 levels. We reiterate that key resistances at 90.7 and 91 can limit the corrective up-move. Subsequent resistance is in the band between 91.5 and 91.6.
Trade strategy
As the rupee is biased towards up, and the dollar continues to witness selling interest traders can buy the local currency on dips with a stop-loss at 72.8. A rally above 72.70 can take it higher to 72.60 and then to 72.50 levels. Supports are at 72.84 and 72.90
Supports: 72.80 and 72.84
Resistances: 72.60 and 72.50