Mtechtips MCX-SX USDINR INTRADAY trading analysis 05-10-2016
MTECHTIPS Dollar/rupee traded up while the dollar index traded plunged during early Asian trades Wednesday as investors booked their profits taking advantage of the sharp fall in the greenback during the previous trading session.However, traders will focus on the US jobs report due Friday, for a clear read on the health of the labour market.The greenback plunged on profit-booking by the traders after the dollar index rose to eight-week high on Tuesday as better than expected US manufacturing index increased investors’ bets for a near-term rate hike by the Federal Reserve.Meanwhile, Federal Reserve Chicago President Charles Evans said in comments that the case for raising short-term interest rates remains fairly weak and also suggested the Fed would likely have to let the economy run hot to get weak inflation back up to desired levels.The Indian central bank cut its policy repo rate by 25 basis points to 6.25%, the lowest in more than 5 years, from 6.50%. Consequently, the reverse repo rate was reduced to 5.75% from 6.00% and marginal standing facility (MSF) rate and the Bank Rate to 6.75 per cent.USDINR retraced from the day high 66.8475 and tested 66.62 before closing at 66.6925 levels. Intraday price action resulted in formation of high wave stick is pointing neutralize some of the bearish momentum, however any rise towards 66.95-67.00 is expect to selling activities again following to previous swing low break down. Further, pair would need to trade above 67.25 in order to test 67.55-67.70.