Rupee was expected to hold strong after breaking the crucial support of 47.80 despite the dollar not making fresh lows internationally.
Stocks are not holding so strong despite which we are seeing strength in dollar rupee to hold. Until we see a break of 48.00 levels again on a closing basis the bias of rupee is quite strong. Medium term target 46.00 levels.
Bias looks strong for rupee. Sell at every rally till 48.00 levels. (USD/INR 46.42) Bullish.
Euro
EURO had a moderate bullish momentum yesterday. The pair is now trading above the trendline resistance indicating bullish pressure still able to maintain it’s momentum.
Technically in nearest term the bias is bullish testing 1.4720 – 1.4850 area.
However please note that in longer term perspective, the rejection to move above 1.4850 on September 23 should keep the medium term bias remains neutral. Buying close to 1.46 is recommended. (EUR/USD-1.4734) Bullish
Pound
GBP made upward movement after taking support at 1.5850 levels. As long as the pair able to stay above 1.6000, the nearest bias remains bullish and break above 1.6120 area should trigger further bullish momentum testing 1.6265 area.
However break below 1.6000 and a movement back into the triangle should be seen as the bullish scenario failure and could give a chance for the bearish pressure to regain it's momentum. Look at selling opportunities between 1.61-1.6200 levels for medium term target 1.5900 and 1.5800.(GBP/USD 1.6030) Bearish
Yen
Yen continues to stay in range and we cannot see any signal for a reversal, so any upside momentum should be seen as correction.
Immediate resistance at 89.15. Break above that area could trigger further bullish correction till 90.42 .Initial support at 88.22. Break below that area should continue the bearish pressure testing 87.10. (USD/JPY 89.20) Bullish
Aussie
Aud maintains bullish bias on the break above 0.8787.It met resistance at its channel trendline resistance at 1.9090 levels.
Technically buying on dips close to important supports remains the best strategy in the current market scenario.
Only a continuous move below 0.8600 would break the trendline and stand bearish for the pair. (AUD/USD -0.9040) Bullish.
Dollar index
The view on Dollar Index (basket against 6 currencies with EUR accounting for 57% of the basket) stays neutral.
We are targeting 75.83 as the next support and then a 75.50 levels from where we should see good correction happening. (Dollar Index - 76.30).Neutral
