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USDINR & USD Index – Outlook

 USDINR pair had reached a high at 73.372 before it turned lower and broke its rising support trend line at 72.600. Resistance can now be found at 72.508 and a break higher would look to retest the trend line at 72.900. As the trend line is rising close to 73.000 it may add additional resistance and strength to this level going forward. If price can break above this level then a retest of the high could follow. Resistance levels over head come in at 73.500 and 74.000.

Support at 72.200 is currently being tested and a drop below this level can test the previous support at 72.000. Further support is found at the former resistance area of 71.570. Price previously consolidated just below and formed a bull flag on the way higher. The low of that bull flag found support at 71.000 and this level will be key for traders. A loss of the level may see the 70.000 round number retested.

 

USDDXY is potentially forming a head and shoulders pattern. The right shoulder may need some more development but a loss of the trend line support around the 9420.00 area could trigger a selloff to the target around 9200.00. At present there is support from the 100 DMA at 9440.00. Below the neckline the higher low at 9400.00 is found and a loss of this level may lead to a move down to 9336.00. Previous support has been noted below this level at 9280.00 followed by previous resistance at 9250.00. The 200 DMA is found at 9225.00 with the target area is located just below 9200.00.

Resistance may develop at the 50 DMA around 9480.00 followed by the lower high at 9534.00. A break above this area may suggest an attempt to develop the right shoulder some more. It the trend line is lost before this happens then the entry is null and void and the pattern needs to be re-assessed. A confirmed close above 9600.00 would suggest that something else is happening and potentially offers a retest of the high at 9660.80. Above this level 9700.00 can become resistance.

GBPUSD and EURUSD Video report ahead of BOE and ECB Rate Decisions and Monetary Policy Statements. 

 

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