You can buy Dollar on dip strategy
Indian Rupee give breakout above the resistance of level of Rs 72.80 levels on the weekly closing due to sudden surge in 10-year benchmark treasury by 60 basis points to 1.6 per cent in the week.
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Mumbai, Mar 06 Indian Rupee give breakout above the resistance of level of Rs 72.80 levels on the weekly closing due to sudden surge in 10-year benchmark treasury by 60 basis points to 1.6 per cent in the week.
Dollar index is also coming up near the USD 92 mark after US nonfarm payroll as economy added 379k job.
As per the RBI weekly data, India's Forex reserve at USD 429.45 billion which came down by more than USD 100 billion. The main reason of comedown is crude oil prices.
The country having 85 per cent of dependability of importing crude oil and rising price are push dollar high against the local currency. The medium-term trend is bullish according to the daily swing chart and after the successive closing below Rs 73.20 short-term trend also become bullish and there can be sharp move towards Rs 74.20 levels.
Any closing above Rs 72.60 will change the view. Technically, USDINR pair closed firmed against the US Dollar taking ques from strong dollar index. USDINR spot is trading near Rs 73.05 and broke the strong resistance of Rs 72.75-72.80 level. Price is closed above 50 days SMA which stood at Rs 72.98 level.
"Initially, short covering took the price at Rs 74 against the greenback but then cool off again. Trader should make buy on dip strategy for the week with the stop loss of Rs 72.80 levels for the target of Rs 73.60 levels," Khsitij Purohit, Product Manager Currency & Commodity, CapitalVia Global Research said.
