Rupee reached our exact target of 49.20 levels and corrected lower. We see some very short term correction till 48.50-60 levels which would again pull rupee bears in the market.We would favour going longs around these levels (importers cover). We maintain bearishness in rupee in medium term. Only and Only if we get support from dollar strength and bearish momentum in stocks , commodities and dollar index we could see rupee at 50 levels soon otherwise rangebound between 48.60 and 49.20. Bearish (USD/INR : 48.65)
The EUR USD didn’t make significant movement yesterday, with only 60 pips movement. On h4 chart below we can see that the bearish channel has been violated to the upside indicating potential bullish outlook but the lack of trade volume usually leads to false breakout so we have to be very careful here and do not rush jump into the market. The bias remains neutral in nearest term. I think range trading strategy to buy around 1.4180 or to sell around 1.4405/46 is still the best strategy in the current situation. (EUR/USD 1.4332) Neutral